Summary
AutoZone Inc. reported solid financial results for the twelve weeks ended May 8, 2010, demonstrating significant year-over-year growth. Net sales increased by 9.9% to $1.82 billion, driven by a robust 7.1% increase in domestic same-store sales, indicating healthy demand from both retail and commercial customers. This top-line growth translated into a substantial 31.5% increase in diluted earnings per share, reaching $4.12. The company also showed improved profitability, with gross profit margin increasing to 50.7% from 50.2% in the prior year period. This was attributed to higher merchandise margins and better leverage of distribution costs. Operating expenses as a percentage of sales also decreased, reflecting improved operational efficiency. The company's strong cash flow from operations of $741 million for the thirty-six week period highlights its ability to generate cash to fund investments and capital allocation. AutoZone continues its strategic focus on growth through new store development and enhancements, while also actively returning capital to shareholders through its share repurchase program. The company's financial health appears strong, supported by consistent sales growth, improved margins, and effective cost management, positioning it well within its industry.
Financial Highlights
46 data points| Revenue | $1.82B |
| Cost of Revenue | $898.87M |
| Gross Profit | $923.12M |
| Operating Expenses | $567.26M |
| Operating Income | $355.87M |
| Interest Expense | $36.83M |
| Net Income | $202.75M |
| EPS (Basic) | $4.19 |
| EPS (Diluted) | $4.12 |
| Shares Outstanding (Basic) | 48.38M |
| Shares Outstanding (Diluted) | 49.21M |
Key Highlights
- 1Net sales increased by 9.9% to $1.82 billion for the twelve weeks ended May 8, 2010.
- 2Domestic same-store sales grew by a strong 7.1%, indicating healthy customer demand.
- 3Diluted earnings per share (EPS) saw a significant increase of 31.5% to $4.12.
- 4Gross profit margin improved to 50.7% from 50.2% in the prior year period.
- 5Operating expenses as a percentage of sales decreased to 31.1% from 31.8%, demonstrating improved efficiency.
- 6Cash flow from operations for the thirty-six week period was robust at $741 million.
- 7The company repurchased $558.3 million of its common stock during the thirty-six week period, reflecting a commitment to shareholder returns.