1. AutoZone reported $4.6 billion in net sales, up 8.2% year-over-year. 2. Same-store sales increased by 5.5%, with domestic growth at 4.8%. 3. Gross profit margin decreased to 51.0%, impacted by LIFO effects. 4. The company repurchased 108,000 shares for $431.1 million this quarter. 5. AutoZone opened 53 new stores, focusing on market share growth.
FAQ
Why Bullish?
Despite margin contraction, strong revenue growth and store expansion indicate positive future outlook.
How important is it?
The earnings report shows solid growth, signaling sustained demand in the auto parts industry.
Why Long Term?
Store openings and increasing sales trends support steady growth potential in the long run.
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AutoZone Reports Strong First Quarter Results with Increased Sales and Earnings
On December 9, 2025, AutoZone, Inc. (NYSE: AZO) announced impressive financial results for its first quarter, which concluded on November 22, 2025. The company achieved net sales of $4.6 billion, marking an 8.2% increase compared to the same period last year. Furthermore, AutoZone reported a total increase in same-store sales of 4.7%, driven by strong performance in both domestic and international markets.
Sales Growth Breakdown
The boost in same-store sales was categorized as follows:
- Domestic Same Store Sales: 4.8%
- International Same Store Sales: 11.2%
- Total Company Sales Growth: 5.5%
These figures highlight that despite fluctuations in foreign exchange rates, AutoZone's core operations showcased solid performance.
Financial Highlights
AutoZone's gross profit margin stood at 51.0%, though it experienced a decrease of 203 basis points from the previous year, largely due to a 212 basis point non-cash LIFO impact. Operating profit was recorded at $784.2 million, reflecting a decrease of 6.8%. The company's net income for the quarter was $530.8 million, down from $564.9 million reported last year, resulting in diluted earnings per share (EPS) of $31.04 compared to $32.52 in the prior year.
Share Repurchase Program and Inventory Management
During the quarter, AutoZone repurchased 108,000 shares of its common stock at an average price of $3,999, representing a total investment of $431.1 million. The company has about $1.7 billion remaining under its current share repurchase authorization. Additionally, AutoZone's inventory rose by 13.9% over the previous year, attributable to growth initiatives and inflation pressures.
Future Expansion Plans
CEO Phil Daniele acknowledged the efforts of AutoZone's employees in achieving strong sales growth. He mentioned the opening of 53 new stores globally during the quarter, comprising 39 in the U.S., 12 in Mexico, and 2 in Brazil. As of November 22, 2025, AutoZone operates a total of 7,710 stores worldwide.
Daniele stated, "As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value."
Conference Call and Investor Relations
AutoZone will host a conference call on December 9, 2025, at 10:00 a.m. ET to discuss its first quarter results. The call will be available through a webcast and can be accessed via AutoZone's Investor Relations page on their website. Investors can also participate by dialing (888) 506-0062 with the passcode AUTOZONE.
Understanding Non-GAAP Measures
The release includes financial information not aligned with Generally Accepted Accounting Principles (GAAP). These non-GAAP measures include adjustments such as return on invested capital and adjusted debt metrics. AutoZone believes that presenting these metrics offers investors clearer insight into comparative operational results, although they should not replace standardized GAAP measures.
Forward-Looking Statements
Investors should be aware that certain statements in this release constitute forward-looking statements as outlined by the Private Securities Litigation Reform Act of 1995. These projections involve risks and uncertainties that could cause actual results to differ materially from expectations.