Summary
AutoZone, Inc. (AZO) reported its second-quarter fiscal year 2026 results, showcasing a notable 8.1% increase in net sales, reaching $4.3 billion. This growth was primarily driven by a 3.3% increase in same-store sales on a constant currency basis and contributions from new store openings. Despite top-line growth, operating profit saw a slight decrease of 1.2% to $698.5 million, impacted by an unfavorable $59.0 million non-cash LIFO charge. Consequently, net income declined by 3.9% to $468.9 million, and diluted earnings per share decreased by 2.3% to $27.63. The company's balance sheet reflects a 5.9% increase in total assets to $20.4 billion, largely due to a 6.5% rise in merchandise inventories and a significant increase in property and equipment. However, total liabilities also grew, with accounts payable increasing by 3.4% and long-term debt showing a slight rise. The company's liquidity remains strong, with $285.5 million in cash and cash equivalents and substantial availability under its revolving credit facility.
Financial Highlights
44 data points| Revenue | $4.27B |
| Cost of Revenue | $2.03B |
| Gross Profit | $2.24B |
| SG&A Expenses | $1.54B |
| Operating Income | $698.46M |
| Net Income | $468.86M |
| EPS (Basic) | $28.29 |
| EPS (Diluted) | $27.63 |
| Shares Outstanding (Basic) | 16.57M |
| Shares Outstanding (Diluted) | 16.97M |
Key Highlights
- 1Net sales increased by 8.1% to $4.3 billion for the twelve weeks ended February 14, 2026, compared to the prior year period.
- 2Total company same-store sales increased by 3.3% on a constant currency basis for the quarter.
- 3Operating profit decreased by 1.2% to $698.5 million, primarily due to an unfavorable non-cash LIFO charge of $59.0 million.
- 4Net income decreased by 3.9% to $468.9 million, and diluted earnings per share decreased by 2.3% to $27.63 for the quarter.
- 5Merchandise inventories increased by 6.5% to $7.5 billion compared to the prior year's end.
- 6Capital expenditures increased to $652.0 million for the twenty-four week period ended February 14, 2026, from $539.7 million in the prior year, driven by investments in new stores and expansion projects.
- 7The company repurchased $741.7 million of its common stock during the twenty-four week period ended February 14, 2026.