Summary
AutoZone Inc. (AZO) reported strong performance for the quarter ending May 7, 2016. Net sales increased by 4.0% to $2.59 billion, driven by a 2.0% same-store sales growth and contributions from new stores. Diluted earnings per share saw a significant increase of 12.6% to $10.77. This growth was supported by a 52.8% gross profit margin, a slight improvement from the prior year, and effective management of operating expenses. The company's financial health remains robust, with operating cash flows providing $1.05 billion for the year-to-date period. AutoZone continues to actively return capital to shareholders through its substantial share repurchase program, repurchasing $1.08 billion in the year-to-date period and maintaining a remaining authorization of $765.1 million. The company also continues its strategic initiatives, including the rollout of more frequent deliveries and its mega hub strategy, aimed at enhancing inventory availability and operational efficiency.
Financial Highlights
48 data points| Revenue | $2.59B |
| Cost of Revenue | $1.22B |
| Gross Profit | $1.37B |
| SG&A Expenses | $834.08M |
| Operating Income | $536.37M |
| Net Income | $327.51M |
| EPS (Basic) | $10.99 |
| EPS (Diluted) | $10.77 |
| Shares Outstanding (Basic) | 29.81M |
| Shares Outstanding (Diluted) | 30.41M |
Key Highlights
- 1Net sales grew 4.0% year-over-year to $2.59 billion for the twelve weeks ended May 7, 2016.
- 2Domestic same-store sales increased by 2.0%.
- 3Diluted earnings per share (EPS) rose 12.6% to $10.77 from $9.57 in the prior year period.
- 4Gross profit margin improved to 52.8% from 52.3% year-over-year.
- 5Operating cash flow for the thirty-six weeks ended May 7, 2016 was $1.05 billion, an increase from the prior year.
- 6The company repurchased $1.08 billion of its common stock during the thirty-six week period.
- 7AutoZone ended the quarter with $213.4 million in cash and cash equivalents.