Summary
AutoZone, Inc. reported solid financial results for the twelve and twenty-four weeks ended February 14, 2015. Net sales increased by 7.7% and 7.8% respectively, driven by a 3.6% domestic same-store sales growth and the inclusion of sales from the recently acquired Interamerican Motor Corporation (IMC). Diluted earnings per share saw a significant increase of 15.6% for both periods, reflecting improved profitability and the positive impact of share repurchases. The company benefited from favorable macroeconomic conditions, including lower gasoline prices which boosted consumer disposable income, and an earlier start to tax refund season which positively impacted sales towards the end of the second quarter. The company is also strategically testing enhancements to its hub distribution model and store inventory to better meet customer needs, which has shown early positive results. AutoZone continues to execute its growth strategy through new store openings and strategic acquisitions like IMC, focusing on expanding its market share, particularly in the import parts segment. The company maintains a strong liquidity position and robust debt management, with significant availability under its credit facilities and ongoing share repurchase programs, underscoring its commitment to shareholder returns.
Financial Highlights
50 data points| Revenue | $2.14B |
| Cost of Revenue | $1.02B |
| Gross Profit | $1.12B |
| SG&A Expenses | $758.76M |
| Operating Income | $361.27M |
| Net Income | $211.72M |
| EPS (Basic) | $6.64 |
| EPS (Diluted) | $6.51 |
| Shares Outstanding (Basic) | 31.90M |
| Shares Outstanding (Diluted) | 32.54M |
Key Highlights
- 1Net sales for the twelve weeks ended February 14, 2015 increased by 7.7% to $2.14 billion, and by 7.8% to $4.40 billion for the twenty-four week period, compared to the prior year.
- 2Domestic same-store sales grew by 3.6% for the quarter, indicating continued strength in core operations.
- 3Diluted earnings per share rose by 15.6% to $6.51 for the twelve-week period and to $13.78 for the twenty-four week period, outpacing net sales growth.
- 4The acquisition of Interamerican Motor Corporation (IMC) contributed positively to sales and is expected to enhance the company's position in the import replacement parts market.
- 5Net cash provided by operating activities was $476.5 million for the twenty-four week period, demonstrating strong operational cash generation.
- 6The company continues its active share repurchase program, with $1.119 billion remaining authorization after the reporting period.
- 7Favorable macroeconomic conditions, including lower gas prices and earlier tax refunds, positively impacted sales during the quarter.