Summary
AutoZone Inc. reported its Q2 fiscal year 2014 results, demonstrating solid sales and earnings growth. Net sales increased by 7.3% to $1.99 billion, driven by a 4.3% rise in domestic same-store sales and contributions from new stores and commercial programs. This top-line growth translated into a significant increase in profitability, with diluted earnings per share (EPS) rising by 17.8% to $5.63. The company's gross margin improved slightly to 52.1% due to better merchandise margins and lower shrink, while operating expenses as a percentage of sales saw a modest increase, primarily due to advertising costs. AutoZone continues to manage its debt effectively, with a healthy interest coverage ratio and a strong liquidity position supported by its revolving credit facility. The company also continued its aggressive share repurchase program, underscoring its commitment to returning value to shareholders.
Financial Highlights
49 data points| Revenue | $1.99B |
| Cost of Revenue | $953.46M |
| Gross Profit | $1.04B |
| SG&A Expenses | $699.69M |
| Operating Income | $337.34M |
| Net Income | $192.83M |
| EPS (Basic) | $5.73 |
| EPS (Diluted) | $5.63 |
| Shares Outstanding (Basic) | 33.65M |
| Shares Outstanding (Diluted) | 34.26M |
Key Highlights
- 1Net sales for the twelve weeks ended February 15, 2014, increased by 7.3% to $1.99 billion, compared to $1.85 billion in the prior year period.
- 2Domestic same-store sales increased by 4.3% for the twelve-week period.
- 3Diluted earnings per share (EPS) rose by 17.8% to $5.63 for the twelve-week period, compared to $4.78 in the prior year period.
- 4Gross profit margin improved to 52.1% from 51.9% in the comparable prior year period, driven by higher merchandise margins and lower shrink.
- 5Operating, selling, general and administrative expenses increased to 35.2% of net sales from 34.7% in the prior year period, mainly due to advertising costs.
- 6Net cash provided by operating activities was $508.0 million for the twenty-four weeks ended February 15, 2014.
- 7The company repurchased $491.5 million of its common stock during the twenty-four week period, demonstrating a continued commitment to capital return.