Summary
AutoZone, Inc. reported its second-quarter fiscal year 2020 results, demonstrating modest top-line growth and improved profitability. Net sales increased by 2.6% to $2.51 billion, driven by the opening of new stores and a strong performance in its domestic commercial sales program, which saw an 8.2% increase. This growth was partially offset by a slight decrease of 0.8% in domestic same-store sales. Despite a slight increase in operating expenses as a percentage of sales, primarily due to domestic store payroll, the company managed to increase its operating profit by 2.0% to $407.9 million. Net income rose by 1.6% to $299.3 million, leading to a significant 7.8% increase in diluted earnings per share to $12.39. The company continued its aggressive share repurchase program, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
45 data points| Revenue | $2.51B |
| Cost of Revenue | $1.15B |
| Gross Profit | $1.37B |
| SG&A Expenses | $958.13M |
| Operating Income | $407.94M |
| Net Income | $299.28M |
| EPS (Basic) | $12.70 |
| EPS (Diluted) | $12.39 |
| Shares Outstanding (Basic) | 23.57M |
| Shares Outstanding (Diluted) | 24.16M |
Key Highlights
- 1Net sales increased by 2.6% to $2.51 billion for the twelve weeks ended February 15, 2020.
- 2Domestic commercial sales showed strong growth, increasing by 8.2% to $556.9 million.
- 3Net income for the quarter rose by 1.6% to $299.3 million.
- 4Diluted earnings per share (EPS) saw a substantial increase of 7.8% to $12.39.
- 5The company repurchased approximately $764.8 million of its common stock during the twenty-four week period.
- 6Operating profit increased by 2.0% to $407.9 million.
- 7Gross profit margin improved slightly to 54.3% from 54.1% in the prior year period, driven by supply chain leverage.