Summary
AutoZone, Inc. (AZO) reported its fiscal 2016 first-quarter results for the period ending November 21, 2015. The company demonstrated solid top-line growth, with net sales increasing by 5.6% to $2.386 billion, driven by a 3.5% increase in domestic same-store sales and contributions from new store openings. This sales growth translated into a robust increase in profitability, with diluted earnings per share (EPS) rising by 14.0% to $8.29 compared to the prior year period. From a financial health perspective, AutoZone maintained a strong liquidity position, with $165.5 million in cash and cash equivalents. The company continued its active capital allocation strategy, repurchasing approximately $400.1 million of its common stock during the quarter, reflecting confidence in its business and commitment to shareholder returns. Despite a slight increase in operating expenses as a percentage of sales, improvements in gross margins and a decrease in net interest expense contributed to the EPS growth. The company also reaffirmed its long-term strategic initiatives, including inventory availability and its mega hub strategy, indicating a focus on operational efficiency and future growth.
Financial Highlights
48 data points| Revenue | $2.39B |
| Cost of Revenue | $1.13B |
| Gross Profit | $1.25B |
| SG&A Expenses | $814.94M |
| Operating Income | $438.00M |
| Net Income | $258.11M |
| EPS (Basic) | $8.46 |
| EPS (Diluted) | $8.29 |
| Shares Outstanding (Basic) | 30.50M |
| Shares Outstanding (Diluted) | 31.14M |
Key Highlights
- 1Net sales increased 5.6% to $2.386 billion, driven by a 3.5% rise in domestic same-store sales.
- 2Diluted earnings per share (EPS) grew 14.0% to $8.29, up from $7.27 in the prior year period.
- 3Gross profit margin improved to 52.5% of net sales, from 52.1% in the prior year period, due to higher merchandise margins.
- 4Operating, selling, general, and administrative expenses increased slightly as a percentage of net sales to 34.2%, primarily due to higher domestic store payroll.
- 5Net interest expense decreased to $35.0 million from $37.1 million due to lower borrowing rates.
- 6The company repurchased $400.1 million of its common stock during the quarter, underscoring its commitment to returning capital to shareholders.
- 7Cash flow from operating activities provided $323.5 million, although this was a decrease from $375.2 million in the prior year, largely due to working capital timing.