Summary
AutoZone, Inc. (AZO) reported strong performance for the fiscal year ending August 26, 2017, with record net income of $1.281 billion, a 3.2% increase over the prior year, and total sales growth of 2.4% to $10.889 billion. The company benefited from growth in both its retail and commercial sales segments, driven by initiatives aimed at improving customer service and expanding commercial reach. Despite macroeconomic factors like fluctuating gas prices and increasing wage pressures, AutoZone demonstrated resilience by effectively managing its product assortment and supply chain. The company continued its strategic store expansion, ending the fiscal year with 6,029 locations across the U.S., Mexico, and Brazil. AutoZone's commitment to its commercial sales program remains a key growth driver, with dedicated sales teams and an expanded product offering through its hub and mega hub stores. Significant investments in supply chain infrastructure and technology underscore the company's focus on operational efficiency and customer satisfaction. Furthermore, AutoZone continued its substantial share repurchase program, returning capital to shareholders and underscoring its financial strength and confidence in its business model.
Financial Highlights
50 data points| Revenue | $10.89B |
| Cost of Revenue | $5.15B |
| Gross Profit | $5.74B |
| SG&A Expenses | $3.66B |
| Operating Income | $2.08B |
| Interest Expense | $159.33M |
| Net Income | $1.28B |
| EPS (Basic) | $45.05 |
| EPS (Diluted) | $44.07 |
| Shares Outstanding (Basic) | 28.43M |
| Shares Outstanding (Diluted) | 29.07M |
Key Highlights
- 1Record net income of $1.281 billion, a 3.2% increase year-over-year.
- 2Total sales increased by 2.4% to $10.889 billion, driven by growth in both retail and commercial segments.
- 3Expanded store footprint to 6,029 locations across the U.S., Mexico, and Brazil.
- 4Domestic commercial sales grew by 5.7%, indicating continued success in the B2B market.
- 5Gross profit margin remained stable at 52.7%, with improvements in merchandise margins offsetting higher supply chain costs.
- 6Operating expenses as a percentage of sales slightly increased to 33.6% due to occupancy costs and higher wage pressures.
- 7Continued robust share repurchase program, demonstrating commitment to returning capital to shareholders.