Summary
AutoZone Inc. (AZO) reported net sales of $2.64 billion for the twelve weeks ended November 17, 2018, a 2.0% increase compared to the same period last year. This growth was primarily driven by new domestic store openings and an increase in domestic commercial sales. Diluted Earnings Per Share (EPS) saw a significant increase of 34.7% to $13.47, largely benefiting from a lower effective income tax rate resulting from the Tax Cuts and Jobs Act of 2017. The company's gross profit margin improved to 53.7% of net sales, up from 52.8% in the prior year, attributed to higher merchandise margins and the impact of prior-year business divestitures. However, operating expenses as a percentage of sales increased due to higher domestic store payroll costs. The company maintained a strong liquidity position, with operating cash flows of $449.2 million. AutoZone also continued its aggressive share repurchase program, returning significant capital to shareholders.
Financial Highlights
46 data points| Revenue | $2.64B |
| Cost of Revenue | $1.22B |
| Gross Profit | $1.42B |
| SG&A Expenses | $929.66M |
| Operating Income | $487.82M |
| Net Income | $351.41M |
| EPS (Basic) | $13.71 |
| EPS (Diluted) | $13.47 |
| Shares Outstanding (Basic) | 25.63M |
| Shares Outstanding (Diluted) | 26.10M |
Key Highlights
- 1Net sales increased by 2.0% to $2.64 billion for the twelve weeks ended November 17, 2018, compared to the prior year period.
- 2Diluted Earnings Per Share (EPS) rose by 34.7% to $13.47, significantly boosted by a lower effective tax rate due to Tax Reform.
- 3Gross profit margin improved to 53.7% of net sales, up from 52.8% in the prior year, driven by higher merchandise margins and prior year divestitures.
- 4Operating expenses as a percentage of sales increased, primarily due to higher domestic store payroll costs.
- 5Net cash provided by operating activities was $449.2 million, though lower than the prior year's $565.0 million, mainly due to the timing of accrued payments.
- 6The company repurchased $497.1 million of its common stock during the quarter, with $984.6 million remaining under its authorized repurchase program.
- 7The average age of vehicles on the road continues to exceed 11 years, supporting long-term demand for automotive replacement parts.