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AutoZone posts $4.84B sales, beats earnings estimates

Wall Street Journal US Business •
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AutoZone posted fiscal third‑quarter sales of $4.84 billion, up from $4.46 billion a year earlier, driven by domestic demand. Same‑store sales climbed 5.5%, with constant‑currency growth of 3.9%—4.1% in the U.S. and 1.6% abroad. The results edged close to Wall Street’s $4.86 billion forecast. Analysts had expected modest acceleration after the retailer’s recent pricing push.

Net income rose to $641.5 million, or $38.07 per share, versus $608.4 million and $35.36 a share a year ago. The earnings beat FactSet’s consensus of $36.22 per share, underscoring the profit impact of higher parts turnover and cost‑control measures. Margin expansion helped offset a slightly softer international segment.

Investors responded positively, with the stock ticking higher after hours as the retailer demonstrated resilience amid a competitive aftermarket. The domestic surge reflects steady vehicle miles traveled and a growing DIY repair trend, while modest overseas gains hint at incremental market share gains. AutoZone’s performance reinforces its positioning as the leading U.S. parts distributor.

The earnings beat also narrows the gap with rival O'Reilly Automotive, whose recent quarter showed comparable same‑store growth. With inventory levels stable and pricing power intact, AutoZone may continue to extract incremental profit as the repair market steadies in the U.S. and Canada markets overall.