Summary
AutoZone, Inc. reported solid financial results for the third quarter ended May 6, 2023, with a notable increase in net sales and net income compared to the prior year. Net sales rose by 5.8% year-over-year, driven by an increase in domestic same-store sales and contributions from new store openings. The company experienced a 9.3% increase in operating profit and a corresponding 9.3% rise in net income, translating to a significant 17.5% growth in diluted earnings per share, reaching $34.12. The company's performance was supported by strong domestic commercial sales, which grew by 6.3% and now represent approximately 30.7% of domestic auto parts sales. Despite inflationary pressures and increased freight costs impacting the cost of sales, AutoZone managed to improve its gross profit margin, aided by a non-cash LIFO benefit. Continued investment in new stores and supply chain initiatives underscores the company's strategy for long-term growth.
Financial Highlights
45 data points| Revenue | $4.09B |
| Cost of Revenue | $1.94B |
| Gross Profit | $2.15B |
| SG&A Expenses | $1.29B |
| Operating Income | $858.48M |
| Net Income | $647.72M |
| EPS (Basic) | $35.22 |
| EPS (Diluted) | $34.12 |
| Shares Outstanding (Basic) | 18.39M |
| Shares Outstanding (Diluted) | 18.98M |
Key Highlights
- 1Net sales increased by 5.8% to $4.09 billion for the quarter.
- 2Domestic same store sales grew by 1.9%, indicating consistent demand.
- 3Operating profit increased by 9.3% to $858.5 million.
- 4Net income grew by 9.3% to $647.7 million.
- 5Diluted earnings per share (EPS) saw a substantial increase of 17.5% to $34.12.
- 6Domestic commercial sales increased by 6.3%, highlighting strength in the B2B segment.
- 7The company repurchased $2.7 billion of its common stock during the first 36 weeks of the fiscal year, demonstrating a commitment to returning capital to shareholders.