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AutoZone Reports Modest Sales Growth in Q4 2025

AutoZone Reports Modest Sales Growth in Q4 2025

AutoZone Inc ( (AZO) ) has released its Q4 earnings. Here is a breakdown of the information AutoZone Inc presented to its investors.

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AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories in the Americas, reported its financial results for the fourth quarter of fiscal 2025. The company operates over 7,600 stores across the U.S., Mexico, and Brazil, offering a wide range of automotive products and services.

In its latest earnings report, AutoZone announced a modest increase in net sales for the fourth quarter, reaching $6.2 billion, up 0.6% from the previous year. Adjusted for the additional week in the prior year, sales grew by 6.9%. The company’s same-store sales saw a positive trend with a 4.5% increase overall, driven by a 4.8% rise in domestic sales and a 2.1% increase internationally.

Key financial metrics revealed a decrease in gross profit margin to 51.5% due to a significant LIFO charge, while operating expenses rose to 32.4% of sales. Despite these challenges, AutoZone’s net income for the quarter was $837 million, with diluted earnings per share at $48.71. For the fiscal year, net sales reached $18.9 billion, with a slight decline in net income and earnings per share.

AutoZone continued to expand its footprint by opening 141 new stores globally in the quarter, including 91 in the U.S. The company also repurchased 117,000 shares of its common stock, reflecting its commitment to returning value to shareholders. Inventory levels increased significantly, aligning with the company’s growth initiatives.

Looking ahead, AutoZone’s management remains optimistic about sustaining growth in both domestic and international markets. The company plans to continue its aggressive store expansion strategy and focus on enhancing shareholder value through disciplined financial management and strategic investments.

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