Summary
AutoZone, Inc. (AZO) reported financial results for the twelve weeks ended February 9, 2019. The company demonstrated modest top-line growth, with net sales increasing by 1.6% to $2.45 billion, driven by a 2.6% increase in domestic same-store sales and contributions from new domestic stores. This growth was partially impacted by prior-year business divestitures. Net income saw a slight increase of 1.8% to $294.6 million, resulting in a diluted earnings per share (EPS) of $11.49, a 10.7% increase compared to the prior year. This EPS growth was bolstered by the company's ongoing share repurchase program and a lower effective tax rate, partly influenced by the Tax Cuts and Jobs Act. The company maintained a strong gross profit margin of 54.1%, indicating effective merchandise cost management. Operating expenses were well-controlled, particularly when excluding the prior year's impairment charges, demonstrating operational leverage.
Financial Highlights
46 data points| Revenue | $2.45B |
| Cost of Revenue | $1.13B |
| Gross Profit | $1.33B |
| SG&A Expenses | $925.09M |
| Operating Income | $400.02M |
| Net Income | $294.64M |
| EPS (Basic) | $11.71 |
| EPS (Diluted) | $11.49 |
| Shares Outstanding (Basic) | 25.17M |
| Shares Outstanding (Diluted) | 25.64M |
Key Highlights
- 1Net sales increased 1.6% to $2.45 billion for the twelve weeks ended February 9, 2019.
- 2Domestic same-store sales grew by 2.6%.
- 3Net income rose 1.8% to $294.6 million.
- 4Diluted Earnings Per Share (EPS) increased significantly by 10.7% to $11.49, benefiting from share repurchases and a lower effective tax rate.
- 5Gross profit margin improved to 54.1% from 52.9% in the prior year's comparable period.
- 6Operating expenses as a percentage of sales decreased due to leverage, excluding prior year impairment charges.
- 7The company continued its aggressive share repurchase program, with $847.1 million spent in the first twenty-four weeks of fiscal 2019 and $634.6 million remaining authorization as of February 9, 2019.