What was the primary driver for the decrease in operating profit?

The primary driver for the decrease in operating profit was an unfavorable non-cash LIFO (Last-In, First-Out) adjustment of $98.0 million. This adjustment impacts the cost of goods sold and reduces reported profit without affecting cash flow.

How did Autozone's sales perform in different segments?

Autozone reported a total company same store sales increase of 4.7% on a constant currency basis. Domestic same store sales grew 4.8%, while international same store sales saw a 3.7% increase (11.2% on a constant currency basis). Domestic commercial sales also showed strong growth, increasing by 14.5%.

What is Autozone's liquidity position?

Autozone maintains a strong liquidity position with $287.6 million in cash and cash equivalents as of November 22, 2025. Additionally, the company has $2.2 billion in undrawn capacity available under its revolving credit facility, providing ample resources for operations and strategic investments.

What is the outlook for capital expenditures?

Autozone expects to increase its investment in the business during fiscal year 2026. Capital expenditures are primarily directed towards growth initiatives, including opening new stores and expanding hub and mega hub store projects.

AZO 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

Summary

Autozone Inc. (AZO) reported its financial results for the twelve weeks ended November 22, 2025. The company experienced a 8.2% increase in net sales, reaching $4.6 billion, driven by both domestic and international same-store sales growth and contributions from new store openings. However, operating profit saw a decrease of 6.8% to $784.2 million, primarily impacted by an unfavorable non-cash LIFO (Last-In, First-Out) adjustment of $98.0 million. Consequently, net income declined by 6.0% to $530.8 million, and diluted earnings per share decreased by 4.6% to $31.04. Despite the dip in profitability due to the LIFO impact, Autozone maintained a strong operational stance with robust cash flow generation from operating activities ($944.2 million). The company continued its strategic investments in growth initiatives, including new store openings and hub/mega hub expansions, leading to an increase in capital expenditures. Autozone also actively returned capital to shareholders through its share repurchase program, although the pace slightly moderated compared to the prior year. The company maintains significant liquidity with $287.6 million in cash and cash equivalents and substantial availability under its revolving credit facility.

Financial Highlights

44 data points

Beta

Revenue

$4.63B

0.5% Gross Margin

Net Income

$530.82M

0.1% Net Margin

EPS (Diluted)

$31.04

Total Assets

$19.67B

Cash & Equivalents

$287.64M

Free Cash Flow

$630.00M

Financial Statements

Beta

Revenue	$4.63B
Cost of Revenue	$2.27B
Gross Profit	$2.36B
SG&A Expenses	$1.58B
Operating Income	$784.21M
Net Income	$530.82M
EPS (Basic)	$31.88
EPS (Diluted)	$31.04
Shares Outstanding (Basic)	16.65M
Shares Outstanding (Diluted)	17.10M

Key Highlights

1Net sales increased by 8.2% to $4.6 billion for the twelve-week period ended November 22, 2025, compared to the prior year.
2Operating profit decreased by 6.8% to $784.2 million, largely due to a $98.0 million non-cash LIFO charge.
3Net income decreased by 6.0% to $530.8 million, with diluted earnings per share falling 4.6% to $31.04.
4Total company same store sales grew by 4.7% on a constant currency basis.
5Capital expenditures increased to $314.2 million, reflecting investments in growth initiatives and new store openings.
6The company generated $944.2 million in cash flow from operating activities.
7Autozone repurchased $427.2 million of its common stock during the period.

AUTOZONE INC Quarterly Report for Q1 Ended Nov 22, 2025

Summary

Financial Highlights

Key Highlights

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