AUTOZONE INC Quarterly Report for Q2 Ended Feb 9, 2013

Summary

AutoZone Inc. reported its results for the twelve and twenty-four weeks ended February 9, 2013. For the twelve-week period, net sales increased by 2.8% to $1.855 billion, with diluted earnings per share (EPS) growing by 15.1% to $4.78. This growth was driven by new store openings and an expanding commercial sales program, despite a slight decrease in domestic same-store sales of 1.8%. The company achieved a higher gross profit margin of 51.9% compared to 51.3% in the prior year, attributed to lower acquisition costs. For the twenty-four week period, net sales rose by 3.2% to $3.846 billion, and diluted EPS increased by 15.5% to $10.19. This period also saw a slight increase in gross margin to 51.8% due to favorable merchandise margins and reduced shrink. The company completed the acquisition of AutoAnything, an online retailer, for up to $150 million to strengthen its online presence. Autozone continues to repurchase shares, demonstrating a commitment to returning capital to shareholders.

Key Highlights

• 1Net sales increased by 2.8% for the twelve-week period and 3.2% for the twenty-four week period.
• 2Diluted Earnings Per Share (EPS) grew by 15.1% in the twelve-week period and 15.5% in the twenty-four week period.
• 3Domestic same-store sales decreased by 1.8% for the twelve-week period and 0.7% for the twenty-four week period.
• 4Gross profit margin improved to 51.9% for the twelve-week period and 51.8% for the twenty-four week period, driven by lower acquisition costs and favorable merchandise margins.
• 5The company completed the acquisition of AutoAnything for up to $150 million to enhance its e-commerce capabilities.
• 6AutoZone repurchased approximately $502.3 million of its common stock during the twenty-four week period.
• 7Operating cash flow increased to $510.8 million for the twenty-four week period, up from $461.2 million in the prior year.

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