AutoZone Q3 EPS $38.07 with 8.4% Sales Rise and 82 New Stores
AZO•AutoZone posted Q3 net income of $641.5 million, or $38.07 per share, topping the $36.18 consensus, while net sales rose 8.4% to $4.84 billion, slightly below expectations. Operating profit increased 6.6% to $923.8 million (19% margin), domestic same-store sales grew 4.1%, and the company opened 82 new stores globally.
1. Earnings and Net Sales
AutoZone reported Q3 net income of $641.5 million, translating to diluted EPS of $38.07, surpassing the consensus estimate of $36.18. Net sales for the 12-week period rose 8.4% year-over-year to $4.84 billion, slightly below the $4.86 billion expectation.
2. Profit Margins and Expenses
Operating profit increased 6.6% to $923.8 million, driving the operating margin above 19%. Gross profit margin contracted by 57 basis points to 52.2% due to a 77 basis point non-cash LIFO impact, while operating expenses as a percentage of sales improved to 33.1% from 33.3%.
3. Same-Store Sales Trends
Domestic same-store sales grew 4.1%, supported by both DIY and commercial channels, while total company same-store sales rose 3.9% on a constant-currency basis. International same-store sales increased 16.6% reported, but only 1.6% in constant currency as operations in Mexico and Brazil trailed internal targets.
4. Store Expansion and Share Repurchase
The company added 82 net new locations, including 57 in the U.S., 20 in Mexico, and five in Brazil, bringing the total to 7,856 stores and targeting 355–365 openings this fiscal year. Buyback activity totaled $586.3 million for 164,000 shares at an average $3,582 cost, with $804.2 million remaining under authorization.
