AutoZone has reported net sales of $2.8 billion for its third quarter (12 weeks) ended May 4, 2019, an increase of 4.6% from the third quarter of fiscal 2018 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 3.9% for the quarter.
Net income for the quarter increased 10.7% over the same period last year to $405.9 million, while diluted earnings per share increased 19.2% to $15.99 per share from $13.42 per share in the year-ago quarter. Net income and earnings per share benefited from a lower effective income tax rate.
Under its share repurchase program, AutoZone repurchased 472,000 shares of its common stock for $466 million during the third quarter, at an average price of $987 per share. At the end of the third quarter, the company had $1.169 billion remaining under its current share repurchase authorization.
“I want to thank and congratulate all AutoZoners for their efforts in delivering solid results for our third fiscal quarter,” said Bill Rhodes, chairman, president and CEO. “Their commitment to providing superior service again resulted in strong quarterly sales results with solid performance in DIY while our Commercial business growth rate accelerated again. Our industry fundamentals remain strong and the industry data available to us shows we are improving our market share position. And, we continue to be excited about the initiatives we have underway to further enhance our inventory availability, to continue to accelerate our Commercial business and to meet our customers how, when and where they want to be met with our omni-channel efforts. 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,”
During the quarter ended May 4, 2019, AutoZone opened 35 new stores in the U.S., eight stores in Mexico and three stores in Brazil. As of May 4, 2019, the Company had 5,686 stores in 50 states in the U.S., the District of Columbia and Puerto Rico, 576 stores in Mexico, and 25 stores in Brazil for a total count of 6,287.
AutoZone Appoints New Board Member
Also this week, AutoZone announced the appointment of Michael Calbert to the AutoZone board of directors.
“The addition of Mike to our board of directors will further enhance the depth of experiences and the skill sets represented on our Board,” said Rhodes. “We are very fortunate to add this exceptional leader to our Board.”
Calbert currently serves as chairman of the board of Dollar General and is lead director of the Brookshire Grocery Company in Tyler, Texas.
Calbert joined Randall’s Food Markets beginning in 1994 and served as the chief financial officer from 1997 until it was sold in September 1999. He joined the private equity firm KKR & Co. L.P. in January 2000 and was directly involved with several KKR portfolio companies until his retirement in January 2014. He led the Retail industry team within KKR’s Private Equity platform prior to his retirement and served as a consultant to KKR from his retirement until June 2015. Calbert also previously worked as a certified public accountant and consultant with Arthur Andersen Worldwide from 1985 to 1994, where his primary focus was the retail and consumer industry.
With this addition, AutoZone now has 12 board members.