MEMPHIS, Tenn. - AutoZone, Inc. (NYSE: NYSE:AZO) reported a modest increase in net sales for its third quarter, despite a slight shortfall against analyst expectations. AutoZone's stock experienced a modest decline of 0.99% following the earnings release.
The automotive parts retailer announced earnings per share (EPS) of $36.69, surpassing the analyst estimate of $35.95. However, revenue for the quarter was reported at $4.24 billion, falling short of the consensus estimate of $4.29 billion.
The company's net sales marked a 3.5% increase from the third quarter of the previous fiscal year, with same-store sales growth contributing to this uptick. Gross profit as a percentage of sales improved to 53.5%, up from the prior year, primarily due to higher merchandise margins. Despite a slight increase in operating expenses, AutoZone's operating profit rose by 4.9% to $900.2 million.
Net income saw a slight increase from $647.7 million in the same quarter last year to $651.7 million. The diluted EPS also showed growth, rising 7.5% YoY. This financial performance comes in the context of a challenging quarter, with AutoZone's President and CEO Phil Daniele citing the timing of tax refunds and cooler weather as factors impacting domestic sales. Conversely, the international business delivered strong same-store sales results.
The company's share repurchase program continued with the repurchase of 242 thousand shares at an average price per share of $3,036, totaling an investment of $734.7 million.
Looking ahead, AutoZone remains optimistic about its summer selling season and ongoing initiatives to enhance inventory availability and accelerate domestic commercial business growth. With a disciplined approach to operating earnings and cash flow, the company aims to continue delivering strong shareholder value.
As of May 4, 2024, AutoZone has expanded its store count, opening 32 new stores in the U.S., 12 in Mexico, and one in Brazil, bringing the total count to 7,236 stores across the Americas. The company's focus on providing customers with trustworthy advice and exceptional service remains at the core of its strategy for success.
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