10-QPeriod: Q1 FY2025

AUTOZONE INC Quarterly Report for Q1 Ended Nov 23, 2024

Filed December 20, 2024For Securities:AZO

Summary

AutoZone, Inc. (AZO) reported a 2.1% increase in net sales for the twelve weeks ended November 23, 2024, reaching $4.3 billion. This growth was primarily driven by a 1.8% same-store sales increase on a constant currency basis and contributions from new store openings. Despite the sales growth, operating profit saw a slight decrease of 0.9% to $841.1 million, impacted by unfavorable exchange rates. Net income fell by 4.8% to $564.9 million, and diluted earnings per share slightly declined by 0.1% to $32.52. The company continued its robust share repurchase program, spending $540.1 million during the period. Management highlighted that failure and maintenance-related categories remain the largest portion of sales, consistent with the prior year, and that long-term market growth is correlated with miles driven and the age of vehicles on the road.

Financial Highlights

44 data points
Beta

Revenue

$4.28B

53.0% Gross Margin

Net Income

$564.93M

13.2% Net Margin

EPS (Diluted)

$32.52

Total Assets

$17.47B

Cash & Equivalents

$304.02M

Free Cash Flow

$564.77M

Financial Statements
Beta
Revenue$4.28B
Cost of Revenue$2.01B
Gross Profit$2.27B
SG&A Expenses$1.43B
Operating Income$841.15M
Net Income$564.93M
EPS (Basic)$33.40
EPS (Diluted)$32.52
Shares Outstanding (Basic)16.91M
Shares Outstanding (Diluted)17.37M

Key Highlights

  • 1Net sales increased by 2.1% to $4.3 billion for the twelve weeks ended November 23, 2024.
  • 2Same-store sales grew by 1.8% on a constant currency basis.
  • 3Operating profit decreased by 0.9% to $841.1 million, impacted by foreign exchange headwinds.
  • 4Net income decreased by 4.8% to $564.9 million, with diluted EPS slightly down to $32.52.
  • 5The company repurchased $540.1 million of its common stock during the period.
  • 6Commercial sales increased by 3.2% to $1.1 billion.
  • 7Capital expenditures increased to $247.0 million, driven by new store openings and expansion projects.

Frequently Asked Questions

Net sales increased by 2.1% to $4.3 billion for the twelve weeks ended November 23, 2024, driven by a 1.8% increase in same-store sales (on a constant currency basis) and $71.9 million in net sales from new domestic and international stores. Domestic commercial sales also contributed positively, growing by 3.2% to $1.1 billion.

Although net sales increased, operating profit decreased by 0.9% to $841.1 million, partly due to $17.0 million in unfavorable exchange rates. This, combined with other factors impacting the income statement, led to a 4.8% decrease in net income to $564.9 million. Diluted earnings per share saw a slight decrease of 0.1% to $32.52.

AutoZone continues to invest in its growth initiatives, with capital expenditures of $247.0 million in the quarter, primarily for new stores and expansion projects. The company also actively repurchased $540.1 million of its common stock during the period, demonstrating a commitment to returning excess cash to shareholders. The company has $1.7 billion remaining under its current share repurchase authorization.

AutoZone closely monitors miles driven and the number of vehicles on the road that are seven years or older. For the 12-month period ended September 2024, miles driven in the U.S. increased by 1.1%, and as of January 2024, the average age of light vehicles on the road was 12.6 years, indicating a sustained need for automotive parts and service.