10-QPeriod: Q1 FY2009

AUTOZONE INC Quarterly Report for Q1 Ended Nov 22, 2008

Filed December 19, 2008For Securities:AZO

Summary

AutoZone Inc. (AZO) reported its fiscal 2009 first quarter results for the period ending November 21, 2008. The company demonstrated resilience in a challenging economic environment, marked by a slight increase in total revenue to $1.75 billion, up from $1.71 billion in the prior year's first quarter. This growth was primarily driven by a comparable store sales increase of 2.1%, indicating continued customer demand for automotive parts and services despite broader economic concerns. Net income saw a modest rise to $114.2 million, translating to earnings per share (EPS) of $2.48, an improvement from $2.45 in the same period last year. While the overall financial performance remained stable, investors should note the company's strategic focus on managing inventory and operating expenses effectively. The company continued its share repurchase program, demonstrating a commitment to returning value to shareholders. AutoZone's ability to maintain sales growth and profitability in the current macroeconomic climate suggests a relatively defensive business model within the retail sector, though it remains susceptible to overall consumer spending trends and rising costs.

Financial Highlights

26 data points
Beta

Revenue

$1.48B

50.1% Gross Margin

Net Income

$131.37M

8.9% Net Margin

EPS (Diluted)

$2.23

Cash & Equivalents

$85.76M

Free Cash Flow

$89.69M

Financial Statements
Beta
Revenue$1.48B
Cost of Revenue$737.10M
Gross Profit$741.19M
Operating Expenses$502.65M
Operating Income$238.54M
Interest Expense$31.17M
Net Income$131.37M
EPS (Basic)$2.25
EPS (Diluted)$2.23
Shares Outstanding (Basic)58.33M
Shares Outstanding (Diluted)58.91M

Key Highlights

  • 1Total revenue increased by 2.3% to $1.75 billion for the first quarter of fiscal year 2009 compared to the prior year.
  • 2Comparable store sales grew by 2.1%, indicating consistent customer traffic and purchasing behavior.
  • 3Net income rose to $114.2 million, resulting in diluted earnings per share (EPS) of $2.48, a slight increase from $2.45 in the prior year's first quarter.
  • 4Gross profit margin remained strong at 51.6%, showing effective cost management of goods sold.
  • 5Operating expenses as a percentage of sales were well-managed at 31.1%.
  • 6The company continued its share repurchase program, buying back $249.6 million of its common stock during the quarter.
  • 7Inventory levels were managed efficiently, with inventory turnover remaining at a healthy rate.

Frequently Asked Questions

AutoZone reported a modest increase in total revenue to $1.75 billion and comparable store sales growth of 2.1%. Net income also saw a slight increase, demonstrating the company's ability to maintain performance despite a challenging economic environment. This suggests a relatively resilient business model.

The company's ability to maintain a strong gross profit margin of 51.6% and manage operating expenses indicates a focus on operational efficiency. While economic conditions can impact consumer spending, AutoZone's essential product offering often provides a degree of insulation.

Yes, AutoZone actively engaged in its share repurchase program, buying back $249.6 million of its common stock during the quarter, which can be viewed positively by investors as it reduces outstanding shares and potentially increases EPS.

While not detailed in the provided excerpt, investors should review Item 1A (Risk Factors) in the full 10-Q filing for specific risks such as competition, economic downturns affecting consumer discretionary spending, supply chain disruptions, and potential increases in the cost of goods.