AutoZone Domestic Same Store Sales Rise 2.6%

Scott Peters
24 May, 2022
New York City

AutoZone, Inc, the auto parts retailer, said net sales in the fiscal year third quarter ending on May 7 rose 5.9% to $3.9 billion and comparable domestic store sales increased 2.6%. 

Despite the colder than normal weather and late arrival of spring and tough comparison to the previous quarter sales driven by stimulus, the retailer reported positive comparable sales. 

Net income edged down to $592.5 million or $29.93 a share from $596.2 million or $27.15 a share. 

For the nine-month period ending in the third-quarter, same store sales increased 9.5% compared to 19.0% in the period a  year ago.  

In the quarter, total sales across all stores in the U.S., Mexico, and Brazil rose to $556,000 from $541,000 a year ago and sales per square foot increased to $83 from $81. 

At the end of the quarter, Inventories increased 13.9% from a year ago primarily driven by inflation and the remaining driven by higher store counts and distribution centers. 

Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $216,000 versus negative $167,000 last year and negative $198,000 last quarter.

AutoZone repurchased 449,000 shares of its common stock for $900 million during the fiscal third quarter, at an average price of $2,006 per share. 

At the end of the fiscal third quarter, the company had $2.06 billion remaining under its current share repurchase authorization.

Weighted shares outstanding at the end of the quarter declined to 20.4 million from 22.5 million a year ago. 

Stockholders' deficit increased to $3.4 billion at the end of the quarter from $1.8 billion a year ago. 

Guidance and Outlook 

During the earnings call, the company indicated comparable same stores sales are reaccelerating in the current quarter.

The company did not provide any quarterly or annual sales or earnings or business metrics guidance. 

Company and Stock 

AutoZone, Inc, the auto parts retailer, operates 6,115 stores in the U.S., 673 stores in Mexico, and 58 stores in Brazil with a total retail space of 44.7 million square foot. 

The average store size edged up to 6,673 square foot. 

The retailer added 24 new stores in the U.S., 4 in Mexico, and 3 in Brazil. 

AutoZone stock rose 2.8% to 1,858.55 after the auto parts retailer reported earnings. 

For the year so far, AutoZone stock has declined 9% to $1,861.68.