AUTOZONE INC Quarterly Report for Q1 Ended Nov 20, 2021

Summary

AutoZone Inc. (AZO) reported strong performance for the twelve weeks ended November 20, 2021. Net sales saw a significant increase of 16.3% year-over-year, driven by a robust 13.6% rise in domestic same-store sales and a notable 29.4% growth in domestic commercial sales, which now constitute approximately 25% of total sales. This top-line growth translated into improved profitability, with operating profit increasing by 22.6% and net income rising by 25.5%. Diluted earnings per share (EPS) surged by 38.1% to $25.69, significantly exceeding the prior year's $18.61. This EPS growth was further boosted by substantial share repurchase activity, which added $2.33 per share. The company maintained a strong liquidity position with $961.1 million in cash and cash equivalents and $2.2 billion in undrawn capacity on its revolving credit facility. AutoZone continues to prioritize strategic investments in store expansion and supply chain improvements while returning capital to shareholders through its ongoing share repurchase program.

Key Highlights

• 1Net sales increased by 16.3% to $3.7 billion compared to the prior year period.
• 2Domestic same-store sales grew by 13.6%, indicating strong in-store performance.
• 3Domestic commercial sales increased by 29.4%, highlighting the growing importance of the commercial segment.
• 4Operating profit rose by 22.6% to $754.5 million, demonstrating improved operational efficiency.
• 5Net income grew by 25.5% to $555.2 million, reflecting strong profitability.
• 6Diluted Earnings Per Share (EPS) increased by 38.1% to $25.69.
• 7The company repurchased $900 million in common stock during the quarter, underscoring a commitment to returning capital to shareholders.

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