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.

AZO 10-K FY2021 Annual Report — Revenue, Net Income, EPS

Summary

AutoZone Inc. reported a strong fiscal year 2021, with net sales increasing by 15.8% to $14.63 billion and net income rising by 25.2% to $2.17 billion. This growth was driven by a 13.6% 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 billion 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.

Key Highlights

1Record Net Sales of $14.63 billion, a 15.8% increase year-over-year.
2Net Income reached $2.17 billion, up 25.2% from the prior year.
3Domestic same-store sales increased by a strong 13.6%.
4Commercial sales segment grew by 22.6%, representing approximately 23% of total sales.
5The company aggressively returned capital to shareholders, repurchasing $3.38 billion in stock.
6AutoZone opened 218 net new stores, expanding its physical footprint.
7Despite pandemic-related expenses and wage pressures, the company improved its operating expense ratio as a percentage of sales.

Revenue	$14.63B
Cost of Revenue	$6.91B
Gross Profit	$7.72B
SG&A Expenses	$4.77B
Operating Income	$2.94B
Interest Expense	$202.33M
Net Income	$2.17B
EPS (Basic)	$97.60
EPS (Diluted)	$95.19
Shares Outstanding (Basic)	22.24M
Shares Outstanding (Diluted)	22.80M

AUTOZONE INC Annual Report, Year Ended Aug 28, 2021

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions