AutoZone Reports 3rd Quarter Results

AutoZone Reports 3rd Quarter Results

Net income and diluted earnings per share benefitted from a lower effective income tax rate, primarily due to the recent tax reform. 

AutoZone Inc. has reported net sales of $2.7 billion for its third quarter (12 weeks) ended May 5, 2018, an increase of 1.6 percent from the third quarter of fiscal 2017 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 0.6 percent for the quarter.

Net income for the quarter increased 10.6 percent over the same period last year to $366.7 million, while diluted earnings per share increased 17.3 percent to $13.42 per share from $11.44 per share in the year-ago quarter. Net income and diluted earnings per share benefitted from a lower effective income tax rate, primarily due to the recent tax reform.

For the quarter, gross profit, as a percentage of sales, was 53.5 percent (versus 52.6 percent for the same period last year). The increase in gross margin was attributable to higher merchandise margins and the favorable comparison from the impact of the previously announced sale of two business units completed during the quarter (40 bps).

Under its share repurchase program, AutoZone repurchased 599,000 shares of its common stock for $400 million during the third quarter, at an average price of $667 per share. Year-to-date, the company had repurchased 1.4 million of its common shares for $927 million, at an average price of $651 per share. At the end of the third quarter, the company had $897 million remaining under its current share repurchase authorization.

“I would like to thank our entire organization for delivering solid financial results in spite of a softer than expected sales environment. As we entered the third quarter, we were optimistic about our sales prospects for the third quarter since we were coming off the first reasonably severe winter in the past three years. Unfortunately, we had a very cold, wet spring through March and much of April and our sales didn’t respond until spring-like weather arrived in late April. When the conditions improved, our performance improved significantly, which reinforces our optimism about the balance of the selling season. Our ongoing initiatives, which include enhanced inventory availability, further commercial acceleration and new omni-channel selling initiatives, continue to gain traction as we roll them further across our chain. As we continue to invest in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and utilizing our balance sheet and capital effectively,” said Bill Rhodes, chairman, president and CEO.

During the quarter ended May 5, 2018, AutoZone opened 26 new stores and relocated two stores in the U.S., opened four new stores in Mexico and opened no new stores in Brazil. As of May 5, 2018, the company had 5,540 stores in 50 states in the U.S., the District of Columbia and Puerto Rico, 536 stores in Mexico and 16 stores in Brazil for a total store count of 6,092.

You May Also Like

AutoZone Reports Q2 Results with Increases in Same Store Sales

During the quarter, AutoZone opened 19 new stores in the U.S., while adding six new stores in Mexico and four in Brazil.

AutoZone, Inc. posted a solid performance for its second quarter, ending February 10, 2024, with net sales reaching $3.9 billion, marking a 4.6% increase from the same period last fiscal year. The company reported that same store sales, encompassing both domestic and international outlets open for at least one year, showed positive growth. Domestic same store sales increased by 0.3%, while international same store sales surged by 23.9%.

Auto Parts 4 Less Group Inc. Announces Growth Strategy

The company said it aims to provide a seamless and reliable platform for high-quality automotive parts and accessories at competitive prices.

Auto Parts 4 Less Group Inc. Announces Growth Strategy
Autologue Creates Software Solution to Manage Customer Returns

The new eReturns module enables the shop to log a part into the app, select a return reason and view the progress of the return process.

Autologue Creates Software Solution to Manage Customer Returns
APH Expands with Iowa Location

Kurt Croell’s Auto Parts store in New Hampton, Iowa, joined APH and now operates under the name Auto Value of New Hampton.

Auto-Parts-Headquarters-IOwa-
Fenix Parts Acquires Pacific Rim Auto Parts

Pacific is a specialty automotive recycler focused on eCommerce part listings and sales.

Fenix Parts Acquires Pacific Rim Auto Parts

Other Posts

Dana Inc. Reports 2023 Record Sales and Q4 Earnings

For the full-year 2023, Dana reported sales of $10.6 billion, up from $10.2 billion in 2022.

Financial-results
LKQ Corp. Announces Q4, Full Year 2023 Results

President and CEO Dominick Zarcone expressed satisfaction with the company’s results amid macroeconomic challenges.

Standard Motor Products Releases Q4, 2023 Year-End Results

Eric Sills, chairman and CEO, said the company is looking to continue to find ways to better service customers and explore opportunities to partner for growth in 2024.

Financial-results
Phinia Reports Q4 Results & 2024 Outlook

Phinia reported that it expects strong earnings and cash generation in 2024, driven by operational efficiencies, and growth in aftermarket sales.

financial results