AutoZone 3rd Quarter Total Company Same Store Sales Increase 5.4%; Domestic Same Store Sales Increase 5.0%; EPS of $35.36

May 27, 2025 06:55 ET | Source: AutoZone, Inc. MEMPHIS, Tenn., May 27, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.5 billion for its third quarter (12 weeks) ended May 10, 2025, an increase of 5.4% from the third quarter of fiscal 2024 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows: Constant Currency Constant Currency 12 Weeks 12 Weeks* 36 Weeks 36 Weeks* Domestic5.0% 5.0% 2.4% 2.4%International(9.2%) 8.1% (5.7%) 10.4%Total Company3.2% 5.4% 1.4% 3.4%* Excludes impacts from fluctuations of foreign exchange rates. For the quarter, gross profit, as a percentage of sales, was 52.7%, a decrease of 77 basis points vs the prior year. The decrease in gross margin was negatively impacted by higher inventory shrink, higher commercial mix, new distribution center startup costs and a 21-basis point ($8 million net) non-cash LIFO impact. Operating expenses, as a percentage of sales, were 33.3% versus last year at 32.2%. Deleverage was primarily driven by an increase in our self-insurance expense and investments to support our growth initiatives. Operating profit decreased 3.8% to $866.2 million. Net income for the quarter decreased 6.6% over the same period last year to $608.4 million, while diluted earnings per share decreased 3.6% to $35.36. Under its share repurchase program, AutoZone repurchased 70 thousand shares of its common stock at an average price per share of $3,571, for a total investment of $250.3 million. At the end of the third quarter, the Company had $1.1 billion remaining under its current share repurchase authorization. The Company’s inventory increased 10.8% over the same period last year driven by new store growth and our same store sales growth initiatives. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $142 thousand versus negative $168 thousand last year and negative $161 thousand last quarter. “I would like to thank all of our AutoZoners across the globe for their efforts in delivering strong sales results. We continue to be pleased with our strategy to grow our domestic and international DIY and Commercial sales. Domestically, both DIY and Commercial continued to perform well and sales accelerated meaningfully from the previous quarter. Our international business also continued to deliver strong results, as same store sales grew 8.1% on a constant currency basis. While currency rate moves continued to pressure reported sales and earnings, we believe our international operations are positioned well as we continue to focus on opening more stores in these markets. While our gross margins were pressured this quarter, we believe we will drive improvement as our new distribution centers ramp up and we continue to drive higher merchandise margins. We are excited about our momentum heading into the last quarter of the fiscal year, and we are well prepared for our summer selling season. As we continue to invest aggressively in our business, we remain committed to achieving our targeted return on capital for each investment. Our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value,” said Phil Daniele, President and Chief Executive Officer. During the quarter ended May 10, 2025, AutoZone opened 54 new stores in the U.S., 25 in Mexico and five in Brazil for a total of 84 net new stores. As of May 10, 2025, the Company had 6,537 stores in the U.S., 838 in Mexico and 141 in Brazil for a total store count of 7,516. AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services. AutoZone will host a conference call this morning, Tuesday, May 27, 2025, beginning at 10:00 a.m. (ET) to discuss its third quarter results. This call is being webcast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com by clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 52323 through June 10, 2025. This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables. Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs, trade policies and other geopolitical factors; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 31, 2024. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Contact Information:Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.comMedia: Jennifer Hughes at (901) 495-6022, jennifer.hughes@autozone.com AutoZone's 3rd Quarter Highlights - Fiscal 2025 Condensed Consolidated Statements of Operations 3rd Quarter, FY2025 (in thousands, except per share data) GAAP Results 12 Weeks Ended 12 Weeks Ended May 10, 2025 May 4, 2024 Net sales $4,464,339 $4,235,485 Cost of sales 2,110,816 1,969,963 Gross profit 2,353,523 2,265,522 Operating, SG&A expenses 1,487,349 1,365,341 Operating profit (EBIT) 866,174 900,181 Interest expense, net 111,285 104,422 Income before taxes 754,889 795,759 Income tax expense 146,449 144,033 Net income $608,440 $651,726 Net income per share: Basic $36.33 $37.73 Diluted $35.36 $36.69 Weighted average shares outstanding: Basic 16,746 17,273 Diluted 17,207 17,761 Year-To-Date 3rd Quarter, FY2025 (in thousands, except per share data) GAAP Results 36 Weeks Ended 36 Weeks Ended May 10, 2025 May 4, 2024 Net sales $12,695,991 $12,284,888 Cost of sales 5,946,010 5,725,698 Gross profit 6,749,981 6,559,190 Operating, SG&A expenses 4,335,891 4,067,163 Operating profit (EBIT) 2,414,090 2,492,027 Interest expense, net 327,736 298,426 Income before taxes 2,086,354 2,193,601 Income tax expense 425,057 433,382 Net income $1,661,297 $1,760,219 Net income per share: Basic $98.80 $100.96 Diluted $96.17 $98.11 Weighted average shares outstanding: Basic 16,815 17,434 Diluted 17,274 17,941 Selected Balance Sheet Information (in thousands) May 10, 2025 May 4, 2024 August 31, 2024 Cash and cash equivalents $268,625 $275,358 $298,172 Merchandise inventories 6,822,881 6,155,300 6,155,218 Current assets 7,985,711 7,289,452 7,306,759 Property and equipment, net 6,727,218 6,049,059 6,183,539 Operating lease right-of-use assets 3,145,590 3,097,047 3,057,780 Total assets 18,621,983 17,108,432 17,176,538 Accounts payable 7,887,417 7,369,673 7,355,701 Current portion of debt - 500,000 - Current liabilities 9,465,535 9,192,587 8,714,243 Operating lease liabilities, less current portion 3,020,664 2,963,026 2,960,174 Debt, less current portion 8,853,110 8,496,288 9,024,381 Stockholders' deficit (3,974,405) (4,838,237) (4,749,614)Working capital (1,479,824) (1,903,135) (1,407,484) AutoZone's 3rd Quarter Highlights - Fiscal 2025 Condensed Consolidated Statements of Operations Adjusted Debt / EBITDAR (in thousands, except adjusted debt to EBITDAR ratio) Trailing 4 Quarters May 10, 2025 May 4, 2024 Net income $2,563,505 $2,625,060 Add: Interest expense 480,888 407,153 Income tax expense 666,378 682,310 EBIT 3,710,771 3,714,523 Add: Depreciation and amortization 591,126 532,906 Rent expense(1) 465,339 425,291 Share-based expense 120,516 102,012 EBITDAR $4,887,752 $4,774,732 Debt $8,853,110 $8,996,288 Financing lease liabilities 407,487 344,966 Add: Rent x 6(1) 2,792,034 2,551,746 Adjusted debt $12,052,631 $11,893,000 Adjusted debt to EBITDAR 2.5 2.5 Adjusted After-tax Return on Invested Capital (ROIC) (in thousands, except ROIC) Trailing 4 Quarters May 10, 2025 May 4, 2024 Net income $2,563,505 $2,625,060 Adjustments: Interest expense 480,888 407,153 Rent expense(1) 465,339 425,291 Tax effect(2) (194,922) (171,484) Adjusted after-tax return $3,314,810 $3,286,020 Average debt(3) $8,987,683 $8,243,879 Average stockholders' deficit(3) (4,538,590) (4,708,140) Add: Rent x 6(1) 2,792,034 2,551,746 Average financing lease liabilities(3) 385,328 306,316 Invested capital $7,626,455 $6,393,801 Adjusted after-tax ROIC 43.5% 51.4% (1) The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended May 10, 2025 and May 4, 2024. Trailing 4 Quarters (in thousands) May 10, 2025 May 4, 2024 Total lease cost, per ASC 842 $625,740 $558,627 Less: Financing lease interest and amortization (117,287) (97,717) Less: Variable operating lease components, related to insurance and common area maintenance (43,114) (35,619) Rent expense $465,339 $425,291 (2) Effective tax rate over the trailing four quarters ended May 10, 2025, and May 4, 2024 was 20.6%. (3)All averages are computed based on trailing five quarter balances. Other Selected Financial Information (in thousands) May 10, 2025 May 4, 2024 Cumulative share repurchases ($ since fiscal 1998) $38,070,948 $36,275,471 Remaining share repurchase authorization ($) 1,079,052 1,374,529 Cumulative share repurchases (shares since fiscal 1998) 155,512 154,938 Shares outstanding, end of quarter 16,724 17,144 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks Ended May 10, 2025 May 4, 2024 May 10, 2025 May 4, 2024 Depreciation and amortization $144,696 $129,224 $415,787 $374,416 Cash flow from operations 769,030 669,480 2,164,582 1,933,866 Capital spending 345,886 235,103 885,623 725,910 AutoZone's 3rd Quarter Highlights - Fiscal 2025 Condensed Consolidated Statements of Operations Selected Operating Highlights Store Count & Square Footage 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks Ended May 10, 2025 May 4, 2024 May 10, 2025 May 4, 2024Domestic: Beginning stores 6,483 6,332 6,432 6,300 Stores opened 54 32 105 68 Stores closed - - - (4)Ending domestic stores 6,537 6,364 6,537 6,364 Relocated stores 2 - 5 3 Stores with commercial programs 6,011 5,843 6,011 5,843 Square footage (in thousands) 43,459 42,078 43,459 42,078 Mexico: Beginning stores 813 751 794 740 Stores opened 25 12 44 23 Ending Mexico stores 838 763 838 763 Brazil: Beginning stores 136 108 127 100 Stores opened 5 1 14 9 Ending Brazil stores 141 109 141 109 Total 7,516 7,236 7,516 7,236 Total Company stores opened, net 84 45 163 96 Square footage (in thousands) 50,761 48,567 50,761 48,567 Square footage per store 6,754 6,712 6,754 6,712 Sales Statistics (in thousands, except sales per average square foot) 12 Weeks Ended 12 Weeks Ended Trailing 4 Quarters Trailing 4 QuartersTotal AutoZone Stores (Domestic, Mexico and Brazil)May 10, 2025 May 4, 2024 May 10, 2025 (1) May 4, 2024Sales per average store $586 $576 $2,514 $2,472 Sales per average square foot $87 $86 $373 $369 Auto Parts (Domestic, Mexico and Brazil) Total auto parts sales $4,378,327 $4,156,411 $18,545,257 $17,647,873 % Increase vs. LY 5.3% 3.5% 5.1% 5.0% Domestic Commercial Total domestic commercial sales $1,270,332 $1,147,113 $5,112,930 $4,719,208 % Increase vs. LY 10.7% 3.3% 8.3% 3.9% Average sales per program per week $17.7 $16.4 $16.3 $16.0 % Increase vs. LY 7.9% (2.4%) 1.9% (1.2%) All Other, including ALLDATA All other sales $86,012 $79,074 $356,114 $327,633 % Increase vs. LY 8.8% 7.1% 8.7% 8.1% (1) Fiscal 2024 results include an additional week of sales of approximately $359.1 million for Total Auto Parts, $95.7 million for Domestic Commercial and $6.7 million for All Other. Sales per average store and sales per square foot benefited from the additional week by $49K and $7K, respectively. 12 Weeks Ended 12 Weeks Ended 36 Weeks Ended 36 Weeks EndedSame store sales (2) May 10, 2025 May 4, 2024 May 10, 2025 May 4, 2024Domestic 5.0% 0.0% 2.4% 0.5%International (9.2%) 18.1% (5.7%) 22.2%Total Company 3.2% 1.9% 1.4% 2.7% International - Constant Currency 8.1% 9.3% 10.4% 10.2%Total Company - Constant Currency 5.4% 0.9% 3.4% 1.5% (2) Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate. Inventory Statistics (Total Stores) as of as of May 10, 2025 May 4, 2024 Accounts payable/inventory 115.6% 119.7% (in thousands) Inventory $6,822,881 $6,155,300 Inventory per store 908 851 Net inventory (net of payables) (1,064,536) (1,214,373) Net inventory/per store (142) (168) Trailing 5 Quarters May 10, 2025 May 4, 2024 Inventory turns 1.4x 1.4x

AutoZone 3rd Quarter Total Company Same Store Sales Increase 5.4%; Domestic Same Store Sales Increase 5.0%; EPS of $35.36

FAQ

Why Neutral?

How important is it?

Why Short Term?

Related Companies

Related News