StockNews.AI
AZO
StockNews.AI
1 min

AutoZone 4th Quarter Total Company Same Store Sales Increase 5.1%; Domestic Same Store Sales Increase 4.8%; 4th Quarter EPS of $48.71; Annual Sales of $18.9 Billion

1. AutoZone's Q4 sales rose 0.6% year-over-year, with adjusted sales up 6.9%. 2. Gross profit margin declined to 51.5%, affected by LIFO charge and expenses. 3. Net income fell 6.2% to $2.5 billion, while EPS decreased by 3.1% to $144.87. 4. AutoZone repurchased 447,000 shares for $1.5 billion, enhancing shareholder return. 5. 141 new stores were opened globally, showing ongoing expansion strategy.

Earnings
0%Current Return
VS
0%S&P 500
$412109/23 07:00 AM EDTEvent Start
$412109/23 07:00 AM EDTLatest Updated
24m saved
Insight
Article

FAQ

Why Neutral?

Although AutoZone shows steady growth and expansion, declining net income and margins may concern investors. Past performance indicates stabilization after dips, suggesting neutrality.

How important is it?

While sales growth is positive, profit decline and increased debt concern investors. Such metrics heavily influence share price in earnings reports.

Why Short Term?

Recent financials may lead to initial volatility, with stabilizing growth expected in the short-term as new stores contribute to sales.

Related Companies

O'Reilly Automotive, Inc. (ORLY)Advance Auto Parts, Inc. (AAP)
September 23, 2025 06:55 ET  | Source: AutoZone, Inc. MEMPHIS, Tenn., Sept. 23, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $6.2 billion for its fourth quarter (16 weeks) ended August 30, 2025, an increase of 0.6% from the fourth quarter of fiscal 2024 (17 weeks). Excluding sales from the additional week included in last year’s quarter, adjusted sales were up 6.9%. Same store sales, or sales for our domestic and international stores open at least one year, are computed on a 16-week and 52-week basis and are as follows:    Constant Currency   Constant Currency 16 Weeks 16 Weeks* 52 Weeks 52 Weeks*        Domestic4.8% 4.8% 3.2% 3.2%International2.1% 7.2% (3.2%) 9.3%Total Company4.5% 5.1% 2.4% 3.9%* Excludes impacts from fluctuations of foreign exchange rates.       For the quarter, gross profit, as a percentage of sales, was 51.5%, a decrease of 98 basis points versus the prior year. The decrease in gross margin was driven by a 128 basis point non-cash LIFO impact ($80 million LIFO charge in the current quarter versus none in the prior year), partially offset by higher merchandise margins. Operating expenses, as a percentage of sales, were 32.4% versus last year at 31.6%. Deleverage was primarily driven by investments to support our growth initiatives. Operating profit decreased 7.8% to $1.2 billion. Net income for the quarter was $837.0 million compared to $902.2 million in the prior year, while diluted earnings per share decreased 5.6% to $48.71. For the fiscal year ended August 30, 2025, net sales were $18.9 billion, an increase of 2.4% from the prior year. Gross profit, as a percentage of sales, was 52.6% versus last year at 53.1%. The decrease in gross margin was impacted by a 55 basis point non-cash LIFO impact ($64 million LIFO charge in the current year versus $40 million LIFO benefit in the prior year). Operating expenses, as a percentage of sales, were 33.6% versus last year at 32.6%. Operating profit decreased 4.7% to $3.6 billion, net income decreased 6.2% to $2.5 billion and diluted earnings per share decreased 3.1% to $144.87 from $149.55. Under its share repurchase program, AutoZone repurchased 117 thousand shares of its common stock during the fourth quarter, at an average price per share of $3,821, for a total investment of $446.7 million. For the fiscal year, the Company repurchased 447 thousand shares of its common stock, at an average price of $3,425, for a total investment of $1.5 billion. At year end, the Company had $632.3 million remaining under its current share repurchase authorization. The Company’s inventory increased 14.1% over the same period last year, driven primarily by growth initiatives. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $131 thousand versus negative $163 thousand last year and negative $142 thousand last quarter. “I would like to thank our entire organization for delivering another strong quarter of sales growth. We continue to be pleased with the results of our strategies to grow both our domestic and international DIY and Commercial sales. Domestically, both DIY and Commercial sales improved sequentially throughout the quarter, and we are pleased with our momentum heading into our new fiscal year. Our international business also continued to deliver strong results, growing same store sales 7.2% on a constant currency basis. We were especially pleased to have opened 141 net new stores globally in the quarter and 304 net new stores for the year. We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time. As we continue to invest in our business, we expect that 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 August 30, 2025, AutoZone opened 91 new stores and closed one in the U.S., opened 45 in Mexico and 6 in Brazil for a total of 141 net new stores. For the fiscal year, the Company opened 304 net new stores. As of August 30, 2025, the Company had 6,627 stores in the U.S., 883 in Mexico and 147 in Brazil for a total store count of 7,657. 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, September 23, 2025, beginning at 10:00 a.m. (ET) to discuss its fourth 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 347798. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 52824 through October 7, 2025. This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to exclude the additional week in the prior year’s fourth quarter and fiscal year, 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. Forward-looking statements 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 contained 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 4th Quarter Highlights - Fiscal 2025         Condensed Consolidated Statements of Operations   4th Quarter, FY2025     (in thousands, except per share data)         GAAP Results     16 Weeks Ended 17 Weeks Ended     August 30, 2025 August 31, 2024         Net sales $6,242,726  $6,205,380  Cost of sales  3,026,233   2,947,517  Gross profit  3,216,493   3,257,863  Operating, SG&A expenses  2,020,428   1,961,183  Operating profit (EBIT)  1,196,065   1,296,680  Interest expense, net  148,087   153,151  Income before taxes  1,047,978   1,143,529  Income tax expense  211,027   241,321  Net income $836,951  $902,208  Net income per share:      Basic $50.02  $52.98   Diluted $48.71  $51.58  Weighted average shares outstanding:      Basic  16,731   17,030   Diluted  17,181   17,491              Adjustments     August 30, 2025 August 31, 2024 (1)         Net sales $-  $365,879  Cost of sales  -   176,855  Gross profit  -   189,024  Operating, SG&A expenses  -   102,278  Operating profit (EBIT)  -   86,746  Interest expense, net  -   9,009  Income before taxes  -   77,737  Income tax expense  -   17,024  Net income $-  $60,713  Earnings per share:      Basic $-  $3.57   Diluted $-  $3.47  Weighted average shares outstanding:      Basic  -   -   Diluted  -   -              Adjusted Results     16 Weeks Ended 16 Weeks Ended     August 30, 2025 August 31, 2024 (1)         Net sales $6,242,726  $5,839,501  Cost of sales  3,026,233   2,770,662  Gross profit  3,216,493   3,068,839  Operating, SG&A expenses  2,020,428   1,858,905  Operating profit (EBIT)  1,196,065   1,209,934  Interest expense, net  148,087   144,142  Income before taxes  1,047,978   1,065,792  Income tax expense  211,027   224,297  Net income $836,951  $841,495  Earnings per share:      Basic $50.02  $49.41   Diluted $48.71  $48.11  Weighted average shares outstanding:      Basic  16,731   17,030   Diluted  17,181   17,491          (1)The Company adjusted Q4 Fiscal 2024 to exclude the impact of the 17th week of operations.          AutoZone's 4th Quarter Highlights - Fiscal 2025       Condensed Consolidated Statements of Operations  Fiscal Year 2025    (in thousands, except per share data) GAAP Results    52 Weeks Ended 53 Weeks Ended    August 30, 2025 August 31, 2024       Net sales $18,938,717  $18,490,268 Cost of sales  8,972,243   8,673,216 Gross profit  9,966,474   9,817,052 Operating, SG&A expenses  6,356,318   6,028,344 Operating profit (EBIT)  3,610,156   3,788,708 Interest expense, net  475,824   451,578 Income before taxes  3,134,332   3,337,130 Income tax expense  636,085   674,703 Net income $2,498,247  $2,662,427 Net income per share:     Basic $148.80  $153.82  Diluted $144.87  $149.55 Weighted average shares outstanding:     Basic  16,789   17,309  Diluted  17,245   17,803            Adjustments    August 30, 2025 August 31, 2024 (1)       Net sales $-  $365,879 Cost of sales  -   176,855 Gross profit  -   189,024 Operating, SG&A expenses  -   102,278 Operating profit (EBIT)  -   86,746 Interest expense, net  -   9,009 Income before taxes  -   77,737 Income tax expense  -   17,024 Net income $-  $60,713 Earnings per share:     Basic $-  $3.51  Diluted $-  $3.41 Weighted average shares outstanding:     Basic  -   -  Diluted  -   -            Adjusted Results    52 Weeks Ended 52 Weeks Ended    August 30, 2025 August 31, 2024 (1)       Net sales $18,938,717  $18,124,389 Cost of sales  8,972,243   8,496,361 Gross profit  9,966,474   9,628,028 Operating, SG&A expenses  6,356,318   5,926,066 Operating profit (EBIT)  3,610,156   3,701,962 Interest expense, net  475,824   442,569 Income before taxes  3,134,332   3,259,393 Income tax expense  636,085   657,679 Net income $2,498,247  $2,601,714 Earnings per share:     Basic $148.80  $150.31  Diluted $144.87  $146.14 Weighted average shares outstanding:     Basic  16,789   17,309  Diluted  17,245   17,803        (1)The Company adjusted Fiscal 2024 to exclude the impact of the 53rd week of operations. Selected Balance Sheet Information    (in thousands)        August 30, 2025 August 31, 2024       Cash and cash equivalents $271,803  $298,172 Merchandise inventories  7,025,688   6,155,218 Total current assets  8,341,379   7,306,759 Property and equipment, net  7,062,509   6,183,539 Operating lease right-of-use assets  3,194,666   3,057,780 Total assets  19,355,324   17,176,538 Accounts payable  8,025,590   7,355,701 Total current liabilities  9,519,397   8,714,243 Operating lease liabilities, less current portion  3,093,936   2,960,174 Total debt  8,799,775   9,024,381 Stockholders' deficit  (3,414,313)  (4,749,614)Working capital  (1,178,018)  (1,407,484)        AutoZone's 4th Quarter Highlights - Fiscal 2025                  Condensed Consolidated Statements of Operations                      Adjusted Debt / EBITDAR         (in thousands, except adjusted debt to EBITDAR ratio)              52 Weeks Ended 53 Weeks Ended          August 30, 2025 August 31, 2024     Net income $2,498,247  $2,662,427      Add: Interest expense  475,824   451,578      Income tax expense   636,085   674,703      EBIT    3,610,156   3,788,708                   Add: Depreciation and amortization  613,199   549,755      Rent expense (1)   463,031   447,693      Share-based expense   124,717   106,246      EBITDAR  $4,811,103  $4,892,402                   Debt   $8,799,775  $9,024,381      Financing lease liabilities  399,940   399,441      Add: Rent x 6 (1)  2,778,186   2,686,158      Adjusted debt $11,977,901  $12,109,980                   Adjusted debt to EBITDAR  2.5   2.5                   Adjusted Return on Invested Capital (ROIC)         (in thousands, except ROIC)              52 Weeks Ended 53 Weeks Ended          August 30, 2025 August 31, 2024     Net income $2,498,247  $2,662,427      Adjustments:         Interest expense   475,824   451,578      Rent expense (1)   463,031   447,693      Tax effect (2)   (190,588)  (181,653)     Adjusted after-tax return $3,246,514  $3,380,045                   Average debt (3) $8,948,381  $8,580,659      Average stockholders' deficit (3)  (4,253,805)  (4,797,747)     Add: Rent x 6 (1)  2,778,186   2,686,158      Average financing lease liabilities (3)  396,323   329,225      Invested capital $7,869,085  $6,798,295                   Adjusted After-Tax ROIC  41.3%   49.7%                   (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 52 weeks ended August 30, 2025 and the 53 weeks ended August 31, 2024.                            52 Weeks Ended 53 Weeks Ended     (in thousands)  August 30, 2025 August 31, 2024     Total lease cost, per ASC 842 $626,625  $588,835      Less: Financing lease interest and amortization  (119,801)  (103,670)     Less: Variable operating lease components, related to insurance and common area maintenance  (43,793)  (37,472)            Rent expense $463,031  $447,693                     (2) Effective tax rate for fiscal 2025 and 2024 was 20.3% and 20.2%, respectively.      (3) All averages are computed based on trailing five quarter balances.                  Other Selected Financial Information         (in thousands)               August 30, 2025 August 31, 2024     Cumulative share repurchases ($ since fiscal 1998) $38,517,689  $36,986,031      Remaining share repurchase authorization ($)  632,311   2,163,969                   Cumulative share repurchases (shares since fiscal 1998)  155,629   155,181                   Shares outstanding, end of quarter  16,665   16,926                        16 Weeks Ended 17 Weeks Ended 52 Weeks Ended 53 Weeks Ended      August 30, 2025 August 31, 2024 August 30, 2025 August 31, 2024              Depreciation and amortization $197,412  $175,339  $613,199 $549,755              Cash flow from operations  990,819   1,070,250   3,155,401  3,004,116              Capital spending  479,698   346,786   1,365,321  1,072,696               AutoZone's 4th Quarter Highlights - Fiscal 2025 Condensed Consolidated Statements of Operations Selected Operating Highlights                 Store Count & Square Footage                               16 Weeks Ended  17 Weeks Ended  52 Weeks Ended  53 Weeks Ended      August 30, 2025  August 31, 2024  August 30, 2025  August 31, 2024 Domestic:             Beginning stores   6,537    6,364    6,432    6,300  Stores opened   91    68    196    136  Stores closed   (1)   -    (1)   (4) Ending domestic stores   6,627    6,432    6,627    6,432                  Relocated stores   4    3    9    6                  Stores with commercial programs   6,098    5,898    6,098    5,898                  Square footage (in thousands)   44,138    42,555    44,138    42,555                  Mexico:              Beginning stores   838    763    794    740  Stores opened   45    31    89    54  Ending Mexico stores   883    794    883    794                  Brazil:              Beginning stores   141    109    127    100  Stores opened   6    18    20    27  Ending Brazil stores   147    127    147    127                  Total     7,657    7,353    7,657    7,353                  Total Company stores opened, net  141    117    304    213                  Square footage (in thousands)   51,818    49,417    51,818    49,417  Square footage per store   6,767    6,721    6,767    6,721                  Sales Statistics            ($ in thousands, except sales per average square foot)              16 Weeks Ended  17 Weeks Ended  52 Weeks Ended  53 Weeks Ended Total AutoZone Stores (Domestic, Mexico and Brazil) August 30, 2025  August 31, 2024 (1)  August 30, 2025  August 31, 2024 (1) Sales per average store  $823   $835   $2,523   $2,505  Sales per average square foot  $122   $124   $374   $373                  Domestic Commercial             Total domestic commercial sales  $1,761,960   $1,662,596   $5,212,294   $4,882,764  % Increase vs. LY (1)   6.0%   10.9%   6.7%   6.2%                 Average sales per program per week  $18.2   $16.7   $16.7   $15.9  % Increase vs. LY   9.0%   0.0%   5.0%   (0.6%)                 (1) Fiscal 2024 results include an additional week of sales of approximately $359.1 million for Total AutoZone Stores with $95.7 milion for Domestic Commercial. Sales per average store and sales per square foot benefited from the additional week by $49K and $7K, respectively.                      16 Weeks Ended  16 Weeks Ended  52 Weeks Ended  52 Weeks Ended Same store sales (2)  August 30, 2025  August 31, 2024  August 30, 2025  August 31, 2024 Domestic    4.8%   0.2%   3.2%   0.4% International   2.1%   4.9%   (3.2%)   16.1% Total Company   4.5%   0.7%   2.4%   2.1%                 International - Constant Currency   7.2%   9.9%   9.3%   10.2% Total Company - Constant Currency   5.1%   1.3%   3.9%   1.4%                 (2) Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate. Same store sales have been reported on a comparable basis to exclude the impact of FY24's additional week.                                                       Inventory Statistics (Total Stores)                 as of  as of            August 30, 2025  August 31, 2024       Accounts payable/inventory   114.2%    119.5%                        ($ in thousands)              Inventory   $7,025,688   $6,155,218        Inventory per store   918    837        Net inventory (net of payables)   (999,902)   (1,200,483)       Net inventory/per store   (131)   (163)                            Trailing 5 Quarters            August 30, 2025  August 31, 2024       Inventory turns   1.4 x  1.5 x                      

Related News