MEMPHIS, Tenn. – AutoZone has reported net sales of $3.1 billion for its fourth quarter (17 weeks) ended Aug. 31, 2013, an increase of 12 percent from the fourth quarter of fiscal 2012 (16 weeks).
Excluding sales from the additional week included in this year’s quarter, sales were up 5.6 percent. Domestic same store sales, or sales for stores open at least one year, increased 1 percent for the quarter.
Net income for the quarter increased $47.5 million, or 14.7 percent, over the same period last year to $371.2 million, while diluted earnings per share increased 23.2 percent to $10.42 per share from $8.46 per share in the year-ago quarter. Excluding the additional week, net income for the quarter increased 7.4 percent over the previous year’s quarter to $347.8 million, while diluted earnings per share increased 15.4 percent to $9.76 per share.
For the quarter, gross profit, as a percentage of sales, was 51.8 percent (versus 51.8 percent for last year’s quarter). While flat for the quarter, lower acquisition costs led to gross margin enhancements, which were offset in part by the inclusion of the recent acquisition of AutoAnything (40 bps). Operating expenses, as a percentage of sales, were 31.3 percent (versus 31.6 percent last year). The decrease in operating expenses, as a percentage of sales, was due to leverage gained on the 17th week of sales.
For the fiscal year ended Aug. 31, 2013, sales were $9.1 billion, an increase of 6.3 percent from the prior year, while domestic same store sales were flat for the year. Operating profit increased 8.9 percent on an operating margin of 19.4 percent. For fiscal 2013, net income increased 9.3 percent to $1 billion, while diluted earnings per share for the period increased 18.3 percent to $27.79 from $23.48. Excluding results from the additional week, sales increased 4.3 percent from the prior year, and operating profit increased 6.4 percent on an operating margin of 19.3 percent. Net income, excluding the extra week, increased 6.7 percent to $993.1 million, and diluted earnings per share increased 15.6 percent to $27.15. Return on invested capital was 32.7 percent, while full year cash flow before share repurchases and changes in debt was $1 billion.
Bill Rhodes, chairman, president and CEO, noted that the company reached a number of milestones for the year, including surpassing $9 billion in total sales, opening 368 additional commercial programs, acquiring AutoAnything, and opening three stores in Brazil.
"We also improved our return on invested capital from the third quarter, achieving 32.7 percent at year end," Rhodes added. "While our same store sales performance was below our expectations for the quarter, we believe the initiatives we have in place will lead to improved sales in both retail and commercial in 2014. We remain committed to delivering exceptional customer service while growing our retail, commercial, international and digital commerce businesses. We will maintain our disciplined approach to growing operating earnings and utilizing our capital effectively."
