In its latest quarter, AutoZone reported an 8.2% year-over-year increase in total revenue, driven by broad-based demand for replacement automotive parts. Comparable same-store sales rose 5.5%, with domestic comps up 4.8% and international comps surging 11.2%, reflecting strong performance in Mexico and Brazil. The company opened a net 53 new stores during the quarter, bringing its global footprint to 7,710 locations, including 6,666 in the U.S., 895 in Mexico and 149 in Brazil.

AutoZone recorded a 4.6% decline in adjusted EPS primarily due to LIFO inventory accounting charges related to recent U.S. tariffs and higher expenses tied to new store openings. Management emphasized that these headwinds are largely one-time in nature and have been largely absorbed by the stock’s 25% correction over the past year. Excluding these items, the underlying gross margin held steady at just over 52%, underscoring the resilience of the core business model even in a higher-cost environment.

With international locations now accounting for more than 11% of total stores, AutoZone is accelerating its presence in the Americas. Year-over-year, Mexican store count grew 11.9% and Brazilian locations expanded by 12.9%. Management has signaled plans to continue this aggressive rollout, targeting markets in Latin America before considering entry into Canada or Europe. Given that international comps outpaced domestic growth by more than twofold, investors view the company’s continued expansion beyond its U.S. stronghold as a key driver of future earnings and market share gains.