AutoZone Shares Drop from $4,388 Peak to $3,100 on Tariff Costs
ORLY•AutoZone shares have fallen from an all-time high near $4,388 to about $3,100 after its fiscal Q1 beat, which featured over 8% revenue growth and healthy same-store sales. Rising tariff-driven import costs and high leverage on its debt-heavy balance sheet are squeezing margins and stoking the selloff.
1. Stock Performance Decline
AutoZone shares tumbled roughly 29% from a record high near $4,388 to around $3,100 following investor concerns about rising costs and leverage, marking one of the steepest declines in its multi-year bull run.
2. Q1 Financial Highlights
In its latest quarter, AutoZone reported earnings above expectations with revenue up more than 8% year over year, supported by healthy domestic same-store sales and growth in its commercial business serving repair shops.
3. Cost Pressures and Leverage
The company is facing higher import costs due to tariffs on international inventory and softness in markets like Mexico and Brazil, while its debt-heavy balance sheet — driven by aggressive share buybacks — has investors wary as borrowing costs climb.
