Summary
AutoZone, Inc. reported strong financial performance for the twelve weeks ended November 18, 2023. Net sales saw a notable increase of 5.1% to $4.2 billion, driven by a 2.1% same-store sales growth on a constant currency basis and contributions from new store openings. The company demonstrated significant operational leverage, with operating profit rising 17.4% to $848.6 million. This translated into a 10.0% increase in net income, reaching $593.5 million, and a substantial 18.6% rise in diluted earnings per share to $32.55. The gross margin improved to 52.8% from 50.1% year-over-year, benefiting from LIFO favorability and better merchandise margins, while operating expenses as a percentage of sales slightly increased due to investments in payroll and technology. The company continues to prioritize shareholder returns through an aggressive share repurchase program, buying back $1.5 billion in the quarter. Despite increased capital expenditures related to growth initiatives like new stores and supply chain expansion, AutoZone maintained a strong liquidity position with $283 million in cash and cash equivalents and significant undrawn capacity on its revolving credit facility. The average age of vehicles on the road remains a tailwind for the industry, supporting AutoZone's long-term growth outlook.
Financial Highlights
44 data points| Revenue | $4.19B |
| Cost of Revenue | $1.98B |
| Gross Profit | $2.21B |
| SG&A Expenses | $1.37B |
| Operating Income | $848.60M |
| Net Income | $593.46M |
| EPS (Basic) | $33.51 |
| EPS (Diluted) | $32.55 |
| Shares Outstanding (Basic) | 17.71M |
| Shares Outstanding (Diluted) | 18.23M |
Key Highlights
- 1Net sales increased by 5.1% to $4.2 billion, exceeding prior year comparable period.
- 2Diluted earnings per share (EPS) grew significantly by 18.6% to $32.55.
- 3Gross margin improved to 52.8% from 50.1%, driven by LIFO favorability and better merchandise margins.
- 4Operating profit increased substantially by 17.4% to $848.6 million, showcasing operational leverage.
- 5The company repurchased $1.5 billion of common stock during the quarter, demonstrating a strong commitment to returning capital to shareholders.
- 6Capital expenditures increased to $235.4 million, reflecting investments in growth initiatives like new stores and supply chain expansion.
- 7AutoZone maintained a robust liquidity position with $283 million in cash and cash equivalents and $2.2 billion in undrawn credit facility capacity.