AutoZone Inc ( (AZO) ) has released its Q2 earnings. Here is a breakdown of the information AutoZone Inc presented to its investors.
AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories in the Americas, reported its financial results for the second quarter of fiscal 2025. The company operates over 7,400 stores across the U.S., Mexico, and Brazil, offering a wide range of products for vehicles and providing commercial sales programs to various automotive service providers.
In its latest earnings report, AutoZone announced a 2.4% increase in net sales, reaching $4.0 billion for the quarter. The company’s same-store sales rose by 2.9% on a constant currency basis, with domestic same-store sales increasing by 1.9%. Despite these gains, the company experienced a decrease in net income by 5.3% to $487.9 million, and diluted earnings per share dropped to $28.29.
Key financial metrics showed that AutoZone’s gross profit margin remained stable at 53.9%, while operating expenses increased to 36.0% of sales due to investments in growth initiatives. The company also repurchased 100,000 shares of its stock, amounting to $329.4 million, and reported a 10.4% increase in inventory compared to the previous year. AutoZone expanded its footprint by opening 45 new stores during the quarter, including 28 in the U.S., 13 in Mexico, and 4 in Brazil.
Looking ahead, AutoZone’s management expressed optimism about the company’s performance, particularly in its international markets, despite currency fluctuations affecting reported sales and earnings. The company remains focused on its growth strategy, aiming to enhance earnings and cash flow while delivering strong shareholder value as it prepares for the upcoming spring and summer selling seasons.