01—Abstract
Summary
Summary of the 10-K filed October 25, 2021. Cited figures are marked; the original filing is the authoritative source.
AutoZone Inc. reported a strong fiscal year 2021, with net sales increasing by 15.8% to $14.63 billiona and net income rising by 25.2% to $2.17 billion.
This growth was driven by a 13.6%b increase in domestic same-store sales and significant growth in the commercial sales segment, which was up 22.6%. The company benefited from sustained high customer demand, partly attributed to government stimulus measures. Despite increased expenses related to pandemic safety protocols and wage pressures, AutoZone demonstrated robust operational efficiency, reflected in a lower operating expense ratio as a percentage of sales.
The company continued its strategic expansion, opening 218 net new stores and investing in its supply chain and hub store network. AutoZone also actively returned capital to shareholders through a substantial share repurchase program, repurchasing $3.38 billionc in fiscal year 2021. Looking ahead, AutoZone remains focused on driving commercial growth, improving store operations, and leveraging its strong financial position to continue delivering value to its shareholders.
02—Key points
Key Highlights
- Record Net Sales of $14.63 billion, a 15.8% increase year-over-year.
- Net Income reached $2.17 billion, up 25.2% from the prior year.
- Domestic same-store sales increased by a strong 13.6%.
- Commercial sales segment grew by 22.6%, representing approximately 23% of total sales.
- The company aggressively returned capital to shareholders, repurchasing $3.38 billion in stock.
- AutoZone opened 218 net new stores, expanding its physical footprint.
- Despite pandemic-related expenses and wage pressures, the company improved its operating expense ratio as a percentage of sales.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, AutoZone Inc kept $0.15.
- Revenue$14.63B100.0%
- Cost of revenue−$6.91B47.2%
- Gross profit$7.72B52.8%
- Operating costs−$4.77B32.6%
- Operating income$2.94B20.1%
- Interest, other & tax−$774.2M5.3%
- Net income$2.17B14.8%
Where FY2021 revenue went
$14.63B- Cost of revenue: $6.91B, 47% of revenue
- SG&A: $4.77B, 33% of revenue
- Net income: $2.17B, 15% of revenue
- Interest, other & tax: $774.2M, 5.3% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed October 25, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $14.63B$12.63B | +15.8% |
| Cost of Revenue | $6.91B$5.86B | +17.9% |
| Gross Profit | $7.72B$6.77B | +14.0% |
| SG&A Expenses | $4.77B$4.35B | +9.7% |
| Operating Income | $2.94B$2.42B | +21.8% |
| Interest Expense | $202.33M$208.02M | −2.7% |
| Net Income | $2.17B$1.73B | +25.2% |
| EPS (Basic) | $97.60$73.62 | +32.6% |
| EPS (Diluted) | $95.19$71.93 | +32.3% |
| Shares Outstanding (Basic) | 22.24M23.54M | −5.5% |
| Shares Outstanding (Diluted) | 22.80M24.09M | −5.4% |
05—Questions
Frequently Asked Questions
What were AutoZone's key financial performance indicators for fiscal year 2021?
For fiscal year 2021, AutoZone reported record net sales of $14.63 billion, a 15.8% increase over the prior year. Net income also reached a record $2.17 billion, a 25.2% increase. Domestic same-store sales grew by 13.6%, and the commercial sales segment saw a significant increase of 22.6%.
How did AutoZone address the impact of COVID-19 and other economic factors?
AutoZone incurred approximately $43.0 million in pandemic-related expenses for safety measures and employee benefits in fiscal 2021. The company experienced unprecedented customer demand, which it believes was partly due to government stimulus. While facing wage pressures, AutoZone managed to lower its operating expenses as a percentage of sales through strong revenue growth and efficiency improvements.
What is AutoZone's strategy for growth and capital allocation?
AutoZone's growth strategy focuses on expanding its store base, including new stores and enhancements to its hub and mega hub network, and accelerating commercial sales. The company also demonstrates a commitment to returning capital to shareholders, as evidenced by its substantial share repurchase program. AutoZone aims to maintain a strong financial position to fund these initiatives.
How does AutoZone manage its inventory and supply chain?
AutoZone manages its inventory and supply chain through a network of distribution centers and a growing number of hub and mega hub stores designed to improve product availability and assortment. The company emphasizes efficient inventory management to meet customer demand, while also working to maintain favorable vendor payment terms.
06—Continue