What were AutoZone's key financial results for the fiscal year ended August 28, 2010?

AutoZone reported record net sales of $7.36 billion, an increase of 8.0% over the prior year. Net income reached $738 million, a 12.4% increase, resulting in diluted earnings per share of $14.97, up 27.6% from the previous year. Domestic comparable store sales increased by 5.4%.

How did economic conditions impact AutoZone's business in fiscal year 2010?

AutoZone benefited from prevailing economic conditions. The recession led consumers to keep their vehicles longer and perform more DIY maintenance, increasing demand for AutoZone's products. An increasing average age of vehicles on the road was identified as a key driver for demand.

What is AutoZone's strategy for growth and store development?

AutoZone continues to pursue growth through opening new stores in attractive markets and expanding its commercial sales program. The company focuses on high-visibility, high-traffic locations and targets markets with a significant number of older vehicles. Investment in existing store infrastructure and the supply chain, including hub stores, also supports growth.

How does AutoZone manage its inventory and supply chain?

The company purchases merchandise centrally through its store support centers and utilizes a network of distribution centers. The "hub store" initiative enhances timely product distribution to local stores. AutoZone also works closely with vendors, often negotiating extended payment terms, which positively impacts working capital.

AZO 10-K FY2010 Annual Report — Revenue, Net Income, EPS

Summary

AutoZone's 2010 10-K filing indicates a strong fiscal year with record earnings of $738 million and an 8.0% increase in net sales to $7.36 billion. The company benefited from a growing trend of consumers keeping older vehicles longer due to economic conditions, leading to increased demand for automotive parts and maintenance. AutoZone saw robust growth in both its domestic retail (6.9%) and commercial (13.8%) segments. The company continued its store expansion, ending the year with 4,627 stores, and demonstrated effective cost management and operational efficiencies, resulting in an improved gross margin and a reduction in operating expenses as a percentage of sales. The company's strategic focus on customer service, a well-tailored product assortment, and strong in-house brands like Duralast contributed to its performance. AutoZone's financial health remained solid, supported by strong operating cash flows and a continued commitment to returning value to shareholders through significant share repurchase programs. Despite economic uncertainties, AutoZone's business model, driven by essential vehicle maintenance, positioned it well to navigate challenges and capitalize on opportunities within the automotive aftermarket.

Financial Highlights

49 data points

Beta

Revenue

$7.36B

0.5% Gross Margin

Net Income

$738.31M

0.1% Net Margin

EPS (Diluted)

$14.97

Total Assets

$5.57B

Cash & Equivalents

$98.28M

Free Cash Flow

$880.85M

Financial Statements

Beta

Revenue	$7.36B
Cost of Revenue	$3.65B
Gross Profit	$3.71B
SG&A Expenses	$2.39B
Operating Expenses	$2.39B
Operating Income	$1.32B
Interest Expense	$162.63M
Net Income	$738.31M
EPS (Basic)	$15.23
EPS (Diluted)	$14.97
Shares Outstanding (Basic)	48.49M
Shares Outstanding (Diluted)	49.30M

Key Highlights

1Achieved record earnings of $738 million and a net sales increase of 8.0% to $7.36 billion in fiscal year 2010.
2Experienced strong growth in both domestic retail (6.9%) and commercial (13.8%) sales segments.
3Continued expansion with a net increase of 210 stores, reaching a total of 4,627 stores across the US and Mexico.
4Reported an improved gross profit margin of 50.4% due to leveraging distribution costs and operational efficiencies.
5Successfully managed operating expenses, reducing them as a percentage of sales to 32.5% through sales leverage.
6Generated substantial operating cash flow of $1.2 billion, supporting investments and share repurchases.
7Demonstrated a commitment to shareholder returns with $1.1 billion in share repurchases during fiscal year 2010.

AUTOZONE INC Annual Report, Year Ended Aug 28, 2010

Summary

Financial Highlights

Key Highlights

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