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10-QPeriod: Q1 FY2020

AUTOZONE INC Quarterly Report for Q1 Ended Nov 23, 2019

Filed December 20, 2019For Securities:AZO

Summary

AutoZone, Inc. reported its financial results for the twelve weeks ended November 23, 2019. Net sales increased by 5.7% to $2.79 billion, driven by a 3.4% increase in domestic same-store sales and the addition of new stores. Operating profit saw a modest increase of 2.5% to $500.0 million. However, net income experienced a slight decrease of 0.3% to $350.3 million, primarily due to a higher effective tax rate resulting from a reduced tax benefit from stock options exercised compared to the prior year period. Despite the slight dip in net income, diluted earnings per share (EPS) rose by 6.2% to $14.30, indicating improved profitability on a per-share basis. The company continues to focus on growth through new store openings and its commercial sales program, which saw a significant increase. The average age of vehicles on the road, a key industry driver, continues to trend favorably, exceeding 11 years, which should support long-term demand for AutoZone's products.

Financial Statements
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Key Highlights

  • 1Net sales increased by 5.7% year-over-year to $2.79 billion.
  • 2Domestic same-store sales grew by 3.4%, indicating steady performance in existing locations.
  • 3Operating profit increased by 2.5% to $500.0 million.
  • 4Diluted Earnings Per Share (EPS) increased by 6.2% to $14.30, demonstrating enhanced shareholder value.
  • 5Commercial sales saw a robust increase of 13.6%, highlighting successful expansion in this segment.
  • 6The company repurchased $450.0 million of its common stock during the quarter, demonstrating a commitment to returning capital to shareholders.

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