EX-99.12exh_991.htmPRESS RELEASE<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">EdgarFiling
EXHIBIT 99.1
AutoZone 3rd Quarter Total Company Same Store Sales Increase 5.4%; Domestic Same Store Sales Increase 5.0%; EPS of $35.36
MEMPHIS, Tenn., May 27, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.5 billion for its third quarter (12 weeks) ended May 10, 2025, an increase of 5.4% from the third quarter of fiscal 2024 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows:
Constant Currency
Constant Currency
12 Weeks
12 Weeks*
36 Weeks
36 Weeks*
Domestic
5.0
%
5.0
%
2.4
%
2.4
%
International
(9.2
%)
8.1
%
(5.7
%)
10.4
%
Total Company
3.2
%
5.4
%
1.4
%
3.4
%
* Excludes impacts from fluctuations of foreign exchange rates.
For the quarter, gross profit, as a percentage of sales, was 52.7%, a decrease of 77 basis points vs the prior year. The decrease in gross margin was negatively impacted by higher inventory shrink, higher commercial mix, new distribution center startup costs and a 21-basis point ($8 million net) non-cash LIFO impact. Operating expenses, as a percentage of sales, were 33.3% versus last year at 32.2%. Deleverage was primarily driven by an increase in our self-insurance expense and investments to support our growth initiatives.
Operating profit decreased 3.8% to $866.2 million. Net income for the quarter decreased 6.6% over the same period last year to $608.4 million, while diluted earnings per share decreased 3.6% to $35.36.
Under its share repurchase program, AutoZone repurchased 70 thousand shares of its common stock at an average price per share of $3,571, for a total investment of $250.3 million. At the end of the third quarter, the Company had $1.1 billion remaining under its current share repurchase authorization.
The Company’s inventory increased 10.8% over the same period last year driven by new store growth and our same store sales growth initiatives. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $142 thousand versus negative $168 thousand last year and negative $161 thousand last quarter.
“I would like to thank all of our AutoZoners across the globe for their efforts in delivering strong sales results. We continue to be pleased with our strategy to grow our domestic and international DIY and Commercial sales. Domestically, both DIY and Commercial continued to perform well and sales accelerated meaningfully from the previous quarter. Our international business also continued to deliver strong results, as same store sales grew 8.1% on a constant currency basis. While currency rate moves continued to pressure reported sales and earnings, we believe our international operations are positioned well as we continue to focus on opening more stores in these markets. While our gross margins were pressured this quarter, we believe we will drive improvement as our new distribution centers ramp up and we continue to drive higher merchandise margins.
We are excited about our momentum heading into the last quarter of the fiscal year, and we are well prepared for our summer selling season. As we continue to invest aggressively in our business, we remain committed to achieving our targeted return on capital for each investment. Our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value,” said Phil Daniele, President and Chief Executive Officer.
During the quarter ended May 10, 2025, AutoZone opened 54 new stores in the U.S., 25 in Mexico and five in Brazil for a total of 84 net new stores. As of May 10, 2025, the Company had 6,537 stores in the U.S., 838 in Mexico and 141 in Brazil for a total store count of 7,516.
AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services.
AutoZone will host a conference call this morning, Tuesday, May 27, 2025, beginning at 10:00 a.m. (ET) to discuss its third quarter results. This call is being webcast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com by clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 52323 through June 10, 2025.
This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.
Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs, trade policies and other geopolitical factors; new accounting standards; our ability to execute our growth initiatives; and other business interruptions.
These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 31, 2024. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information:
Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com
Media: Jennifer Hughes at (901) 495-6022, jennifer.hughes@autozone.com
AutoZone's 3rd Quarter Highlights - Fiscal 2025
Condensed Consolidated Statements of Operations
3rd Quarter, FY2025
(in thousands, except per share data)
GAAP Results
12 Weeks Ended
12 Weeks Ended
May 10, 2025
May 4, 2024
Net sales
$
4,464,339
$
4,235,485
Cost of sales
2,110,816
1,969,963
Gross profit
2,353,523
2,265,522
Operating, SG&A expenses
1,487,349
1,365,341
Operating profit (EBIT)
866,174
900,181
Interest expense, net
111,285
104,422
Income before taxes
754,889
795,759
Income tax expense
146,449
144,033
Net income
$
608,440
$
651,726
Net income per share:
Basic
$
36.33
$
37.73
Diluted
$
35.36
$
36.69
Weighted average shares outstanding:
Basic
16,746
17,273
Diluted
17,207
17,761
Year-To-Date 3rd Quarter, FY2025
(in thousands, except per share data)
GAAP Results
36 Weeks Ended
36 Weeks Ended
May 10, 2025
May 4, 2024
Net sales
$
12,695,991
$
12,284,888
Cost of sales
5,946,010
5,725,698
Gross profit
6,749,981
6,559,190
Operating, SG&A expenses
4,335,891
4,067,163
Operating profit (EBIT)
2,414,090
2,492,027
Interest expense, net
327,736
298,426
Income before taxes
2,086,354
2,193,601
Income tax expense
425,057
433,382
Net income
$
1,661,297
$
1,760,219
Net income per share:
Basic
$
98.80
$
100.96
Diluted
$
96.17
$
98.11
Weighted average shares outstanding:
Basic
16,815
17,434
Diluted
17,274
17,941
Selected Balance Sheet Information
(in thousands)
May 10, 2025
May 4, 2024
August 31, 2024
Cash and cash equivalents
$
268,625
$
275,358
$
298,172
Merchandise inventories
6,822,881
6,155,300
6,155,218
Current assets
7,985,711
7,289,452
7,306,759
Property and equipment, net
6,727,218
6,049,059
6,183,539
Operating lease right-of-use assets
3,145,590
3,097,047
3,057,780
Total assets
18,621,983
17,108,432
17,176,538
Accounts payable
7,887,417
7,369,673
7,355,701
Current portion of debt
-
500,000
-
Current liabilities
9,465,535
9,192,587
8,714,243
Operating lease liabilities, less current portion
3,020,664
2,963,026
2,960,174
Debt, less current portion
8,853,110
8,496,288
9,024,381
Stockholders' deficit
(3,974,405
)
(4,838,237
)
(4,749,614
)
Working capital
(1,479,824
)
(1,903,135
)
(1,407,484
)
AutoZone's 3rd Quarter Highlights - Fiscal 2025
Condensed Consolidated Statements of Operations
Adjusted Debt / EBITDAR
(in thousands, except adjusted debt to EBITDAR ratio)
Trailing 4 Quarters
May 10, 2025
May 4, 2024
Net income
$
2,563,505
$
2,625,060
Add: Interest expense
480,888
407,153
Income tax expense
666,378
682,310
EBIT
3,710,771
3,714,523
Add: Depreciation and amortization
591,126
532,906
Rent expense(1)
465,339
425,291
Share-based expense
120,516
102,012
EBITDAR
$
4,887,752
$
4,774,732
Debt
$
8,853,110
$
8,996,288
Financing lease liabilities
407,487
344,966
Add: Rent x 6(1)
2,792,034
2,551,746
Adjusted debt
$
12,052,631
$
11,893,000
Adjusted debt to EBITDAR
2.5
2.5
Adjusted After-tax Return on Invested Capital (ROIC)
(in thousands, except ROIC)
Trailing 4 Quarters
May 10, 2025
May 4, 2024
Net income
$
2,563,505
$
2,625,060
Adjustments:
Interest expense
480,888
407,153
Rent expense(1)
465,339
425,291
Tax effect(2)
(194,922
)
(171,484
)
Adjusted after-tax return
$
3,314,810
$
3,286,020
Average debt(3)
$
8,987,683
$
8,243,879
Average stockholders' deficit(3)
(4,538,590
)
(4,708,140
)
Add: Rent x 6(1)
2,792,034
2,551,746
Average financing lease liabilities(3)
385,328
306,316
Invested capital
$
7,626,455
$
6,393,801
Adjusted after-tax ROIC
43.5
%
51.4
%
(1) The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended May 10, 2025 and May 4, 2024.
Trailing 4 Quarters
(in thousands)
May 10, 2025
May 4, 2024
Total lease cost, per ASC 842
$
625,740
$
558,627
Less: Financing lease interest and amortization
(117,287
)
(97,717
)
Less: Variable operating lease components, related to insurance and common area maintenance
(43,114
)
(35,619
)
Rent expense
$
465,339
$
425,291
(2) Effective tax rate over the trailing four quarters ended May 10, 2025, and May 4, 2024 was 20.6%.
(3)All averages are computed based on trailing five quarter balances.
Other Selected Financial Information
(in thousands)
May 10, 2025
May 4, 2024
Cumulative share repurchases ($ since fiscal 1998)
$
38,070,948
$
36,275,471
Remaining share repurchase authorization ($)
1,079,052
1,374,529
Cumulative share repurchases (shares since fiscal 1998)
155,512
154,938
Shares outstanding, end of quarter
16,724
17,144
12 Weeks Ended
12 Weeks Ended
36 Weeks Ended
36 Weeks Ended
May 10, 2025
May 4, 2024
May 10, 2025
May 4, 2024
Depreciation and amortization
$
144,696
$
129,224
$
415,787
$
374,416
Cash flow from operations
769,030
669,480
2,164,582
1,933,866
Capital spending
345,886
235,103
885,623
725,910
AutoZone's 3rd Quarter Highlights - Fiscal 2025
Condensed Consolidated Statements of Operations
Selected Operating Highlights
Store Count & Square Footage
12 Weeks Ended
12 Weeks Ended
36 Weeks Ended
36 Weeks Ended
May 10, 2025
May 4, 2024
May 10, 2025
May 4, 2024
Domestic:
Beginning stores
6,483
6,332
6,432
6,300
Stores opened
54
32
105
68
Stores closed
-
-
-
(4
)
Ending domestic stores
6,537
6,364
6,537
6,364
Relocated stores
2
-
5
3
Stores with commercial programs
6,011
5,843
6,011
5,843
Square footage (in thousands)
43,459
42,078
43,459
42,078
Mexico:
Beginning stores
813
751
794
740
Stores opened
25
12
44
23
Ending Mexico stores
838
763
838
763
Brazil:
Beginning stores
136
108
127
100
Stores opened
5
1
14
9
Ending Brazil stores
141
109
141
109
Total
7,516
7,236
7,516
7,236
Total Company stores opened, net
84
45
163
96
Square footage (in thousands)
50,761
48,567
50,761
48,567
Square footage per store
6,754
6,712
6,754
6,712
Sales Statistics
(in thousands, except sales per average square foot)
12 Weeks Ended
12 Weeks Ended
Trailing 4 Quarters
Trailing 4 Quarters
Total AutoZone Stores (Domestic, Mexico and Brazil)
May 10, 2025
May 4, 2024
May 10, 2025 (1)
May 4, 2024
Sales per average store
$
586
$
576
$
2,514
$
2,472
Sales per average square foot
$
87
$
86
$
373
$
369
Auto Parts (Domestic, Mexico and Brazil)
Total auto parts sales
$
4,378,327
$
4,156,411
$
18,545,257
$
17,647,873
% Increase vs. LY
5.3
%
3.5
%
5.1
%
5.0
%
Domestic Commercial
Total domestic commercial sales
$
1,270,332
$
1,147,113
$
5,112,930
$
4,719,208
% Increase vs. LY
10.7
%
3.3
%
8.3
%
3.9
%
Average sales per program per week
$
17.7
$
16.4
$
16.3
$
16.0
% Increase vs. LY
7.9
%
(2.4
%)
1.9
%
(1.2
%)
All Other, including ALLDATA
All other sales
$
86,012
$
79,074
$
356,114
$
327,633
% Increase vs. LY
8.8
%
7.1
%
8.7
%
8.1
%
(1) Fiscal 2024 results include an additional week of sales of approximately $359.1 million for Total Auto Parts, $95.7 million for Domestic Commercial and $6.7 million for All Other. Sales per average store and sales per square foot benefited from the additional week by $49K and $7K, respectively.
12 Weeks Ended
12 Weeks Ended
36 Weeks Ended
36 Weeks Ended
Same store sales (2)
May 10, 2025
May 4, 2024
May 10, 2025
May 4, 2024
Domestic
5.0
%
0.0
%
2.4
%
0.5
%
International
(9.2
%)
18.1
%
(5.7
%)
22.2
%
Total Company
3.2
%
1.9
%
1.4
%
2.7
%
International - Constant Currency
8.1
%
9.3
%
10.4
%
10.2
%
Total Company - Constant Currency
5.4
%
0.9
%
3.4
%
1.5
%
(2) Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.
Inventory Statistics (Total Stores)
as of
as of
May 10, 2025
May 4, 2024
Accounts payable/inventory
115.6
%
119.7
%
(in thousands)
Inventory
$
6,822,881
$
6,155,300
Inventory per store
908
851
Net inventory (net of payables)
(1,064,536
)
(1,214,373
)
Net inventory/per store
(142
)
(168
)
Trailing 5 Quarters
May 10, 2025
May 4, 2024
Inventory turns
1.4
x
1.4
x
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 1 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 6 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor