01—Abstract
Summary
Summary of the 10-Q filed December 20, 2024. Cited figures are marked; the original filing is the authoritative source.
AutoZone, Inc. (AZO) reported a 2.1% increase in net sales for the twelve weeks ended November 23, 2024, reaching $4.3 billiona.
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 millionb, 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 millionc 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.
02—Key points
Key Highlights
- Net sales increased by 2.1% to $4.3 billion for the twelve weeks ended November 23, 2024.
- Same-store sales grew by 1.8% on a constant currency basis.
- Operating profit decreased by 0.9% to $841.1 million, impacted by foreign exchange headwinds.
- Net income decreased by 4.8% to $564.9 million, with diluted EPS slightly down to $32.52.
- The company repurchased $540.1 million of its common stock during the period.
- Commercial sales increased by 3.2% to $1.1 billion.
- Capital expenditures increased to $247.0 million, driven by new store openings and expansion projects.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, AutoZone Inc kept $0.13.
- Revenue$4.28B100.0%
- Cost of revenue−$2.01B47.0%
- Gross profit$2.27B53.0%
- Operating costs−$1.43B33.3%
- Operating income$841.1M19.7%
- Interest, other & tax−$276.2M6.5%
- Net income$564.9M13.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed December 20, 2024Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $4.28B$4.19B | +2.1% |
| Cost of Revenue | $2.01B$1.98B | +1.8% |
| Gross Profit | $2.27B$2.21B | +2.4% |
| SG&A Expenses | $1.43B$1.37B | +4.5% |
| Operating Income | $841.15M$848.60M | −0.9% |
| Net Income | $564.93M$593.46M | −4.8% |
| EPS (Basic) | $33.40$33.51 | −0.3% |
| EPS (Diluted) | $32.52$32.55 | −0.1% |
| Shares Outstanding (Basic) | 16.91M17.71M | −4.5% |
| Shares Outstanding (Diluted) | 17.37M18.23M | −4.7% |
05—Questions
Frequently Asked Questions
What drove the change in AutoZone's net sales compared to the previous year?
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.
Why did net income and earnings per share decrease despite sales growth?
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.
How is AutoZone managing its capital and returning value to shareholders?
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.
What are the key indicators AutoZone monitors for long-term market growth?
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.
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