What was AutoZone's revenue growth in the most recent quarter?

For the twelve weeks ended May 4, 2024, AutoZone reported a 3.5% increase in net sales, reaching $4.2 billion, compared to the prior year period.

How did profitability fare in the quarter?

The company saw improved profitability, with operating profit increasing by 4.9% to $900.2 million and diluted earnings per share rising by 7.5% to $36.69 for the twelve weeks ended May 4, 2024.

What is the company's strategy regarding share repurchases and capital expenditures?

AutoZone continues its aggressive share repurchase program, having spent $2.5 billion in the first 36 weeks of fiscal 2024, with significant authorization remaining. Capital expenditures also increased substantially to $725.9 million year-to-date, reflecting investments in growth initiatives such as supply chain enhancements and new store openings.

Are there any concerns regarding inventory or debt levels?

Inventory levels have increased year-over-year, and while accounts payable also rose, the accounts payable to inventory ratio slightly decreased. The company's debt levels are managed with a target adjusted debt to EBITDAR ratio, and it maintained compliance with all covenants on its borrowing arrangements.

AZO 10-Q Quarterly Report Q3 FY2024 — Revenue, Net Income, EPS

Summary

AutoZone, Inc. (AZO) reported its fiscal third-quarter and year-to-date results for the period ending May 4, 2024. The company demonstrated solid performance with a 3.5% increase in net sales for the twelve-week period, reaching $4.2 billion, and a 4.4% increase year-to-date to $12.3 billion. This growth was supported by the opening of new domestic and international stores and a slight increase in same-store sales. Profitability remained strong, with operating profit increasing by 4.9% to $900.2 million for the quarter. Diluted earnings per share also saw a healthy increase of 7.5% to $36.69 for the quarter and a 14.0% increase to $98.11 year-to-date. The company highlighted the continued resilience of its business model, with failure and maintenance-related categories constituting a significant portion of sales. AutoZone continues to execute on its growth initiatives, including investments in supply chain and store expansion, supported by robust cash flows from operations and available credit facilities.

Financial Highlights

46 data points

Beta

Revenue

$4.24B

0.5% Gross Margin

Net Income

$651.73M

0.2% Net Margin

EPS (Diluted)

$36.69

Total Assets

$17.11B

Cash & Equivalents

$275.36M

Free Cash Flow

$434.38M

Financial Statements

Beta

Revenue	$4.24B
Cost of Revenue	$1.97B
Gross Profit	$2.27B
SG&A Expenses	$1.37B
Operating Income	$900.18M
Net Income	$651.73M
EPS (Basic)	$37.73
EPS (Diluted)	$36.69
Shares Outstanding (Basic)	17.27M
Shares Outstanding (Diluted)	17.76M

Key Highlights

1Net sales increased by 3.5% to $4.2 billion for the twelve weeks ended May 4, 2024.
2Diluted earnings per share (EPS) rose by 7.5% to $36.69 for the twelve-week period.
3Gross profit margin improved to 53.5% for the quarter, driven by higher merchandise margins and LIFO favorability.
4Operating profit increased by 4.9% to $900.2 million for the twelve weeks ended May 4, 2024.
5The company repurchased $2.5 billion of common stock during the first thirty-six weeks of fiscal 2024, with $1.4 billion remaining under its authorization.
6Capital expenditures increased to $725.9 million for the thirty-six weeks ended May 4, 2024, primarily for growth initiatives like distribution centers and new stores.
7Inventory levels increased by 6.8% year-over-year, totaling $6.16 billion, while accounts payable also rose to $7.37 billion.

AUTOZONE INC Quarterly Report for Q3 Ended May 4, 2024

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions