AutoZone shares fall as Q4 earnings miss expectations

AutoZone (NYSE: AZO) reported fourth-quarter earnings that fell short of analyst estimates, sending shares down 2.7% in premarket trading.

The auto parts retailer posted adjusted earnings per share of $48.11 for the quarter ended August 31, missing the consensus estimate of $53.61. Revenue came in at $6.2 billion, slightly below expectations of $6.23 billion but up 9.0% YoY. Excluding an extra week in this year's quarter, adjusted sales rose 2.6%.

Same-store sales increased 0.7% on a 16-week basis, with domestic same-store sales up just 0.2%. The company cited continued challenges from deferrals in discretionary merchandise categories.

"Domestically, our business continues to be challenged by deferrals across our discretionary merchandise categories, but we were pleased to see accelerating Commercial sales performance," said Phil Daniele, President and CEO.

Gross profit margin decreased 21 basis points to 52.5%, primarily due to a 53 basis point non-cash LIFO impact. Operating expenses as a percentage of sales rose to 31.6% from 31.2% last year.

For the full fiscal year 2024, AutoZone posted sales of $18.5 billion, up 5.9% YoY. EPS increased 13.0% to $149.55.

By Sam Boughedda

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