AutoZone, Inc. (AZO), a leading automotive retailer, reported fourth-quarter earnings per share of $51.58, falling short of analysts’ expectations of $53.53. Despite the earnings miss, the company delivered impressive revenue growth, registering $6.205 billion in quarterly revenue, a 9.0% year-over-year increase. This figure was slightly below analysts’ consensus of $6.221 billion. Excluding sales from the additional week included in this year’s quarter, adjusted sales rose by a respectable 2.6%.
The company’s fourth-quarter total company same-store sales climbed by 1.3%, while domestic sales grew by 0.2%. Despite this growth, the gross profit margin for the quarter dipped to 52.5%, a decrease of 21 basis points year over year, primarily attributed to a 53 basis point non-cash LIFO impact. However, operating profit demonstrated strength, surging by 6.1% to $1.3 billion.
AutoZone continued its share repurchase program, buying back 244,000 shares of its common stock during the fourth quarter at an average price of $2,915 per share, representing a total investment of $710.6 million. Since the program’s inception, the company has repurchased 155 million shares at an average price of $238, for a total investment of $37.0 billion. At the end of the fiscal year, AutoZone still had $2.2 billion available under its current share repurchase authorization.
The company’s expansion continued during the quarter, with AutoZone opening 68 new stores in the U.S., 31 in Mexico, and 18 in Brazil, totaling 117 net new stores. The company’s sales per average store reached $0.84 million, up from $0.79 million in the same period last year. Sales per average square foot also saw an increase, rising to $124 from $118 year over year. Total auto parts sales reached $6.09 billion, a significant increase from $5.59 billion in the previous year. Domestic commercial sales for the quarter also saw strong growth, rising to $1.66 billion from $1.5 billion in the previous year.
AutoZone’s strong performance in sales, coupled with its continued expansion and share repurchase program, demonstrates the company’s commitment to growth and shareholder value. Investors interested in gaining exposure to AutoZone can consider investing in Vanguard Mid-Cap ETF (VO) and iShares Russell 1000 Growth ETF (IWF).
In premarket trading on Tuesday, AZO stock was down by 3.73% at $2,935.01.
