Summary
AutoZone Inc. reported strong financial performance for the twelve weeks ended November 19, 2011. Net sales increased by 7.4% to $1.924 billion, driven by a 4.6% same-store sales growth in the domestic market. This growth was observed in both retail and commercial customer segments, likely benefiting from consumers keeping their existing vehicles longer due to economic conditions. Diluted earnings per share saw a significant jump of 24.0% to $4.68, up from $3.77 in the prior year period. The company's gross profit margin improved to 51.1% from 50.7%, attributed to better distribution cost leverage, lower shrink expense, and slightly higher merchandise margins. Operating expenses as a percentage of sales also decreased, benefiting from lower incentive compensation and favorable legal expenses. Despite an increase in net interest expense due to higher average borrowings, the company's robust sales and margin improvements led to a substantial increase in net income. AutoZone continues to actively manage its capital structure, repurchasing $309.8 million of its common stock during the quarter, and has $658.9 million remaining under its authorized share repurchase program. The company also strengthened its liquidity by amending and restating its revolving credit facility to $1.0 billion, maturing in September 2016.
Financial Highlights
48 data points| Revenue | $1.92B |
| Cost of Revenue | $940.71M |
| Gross Profit | $983.63M |
| SG&A Expenses | $642.69M |
| Operating Expenses | $642.69M |
| Operating Income | $340.93M |
| Interest Expense | $39.09M |
| Net Income | $191.13M |
| EPS (Basic) | $4.79 |
| EPS (Diluted) | $4.68 |
| Shares Outstanding (Basic) | 39.87M |
| Shares Outstanding (Diluted) | 40.86M |
Key Highlights
- 1Net sales increased by 7.4% to $1.924 billion for the twelve weeks ended November 19, 2011.
- 2Domestic same-store sales grew by 4.6%, contributing to overall sales growth.
- 3Diluted earnings per share (EPS) rose significantly by 24.0% to $4.68, compared to $3.77 in the prior year.
- 4Gross profit margin improved to 51.1% due to cost leverage and better merchandise margins.
- 5Operating expenses as a percentage of sales decreased, driven by lower incentive compensation and favorable legal expenses.
- 6The company repurchased $309.8 million of its common stock during the quarter, reflecting a strong commitment to shareholder returns.
- 7Liquidity was enhanced through an amendment and restatement of its revolving credit facility, increasing its capacity to $1.0 billion.