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%.
Gross profit margin improved to 53.9% of sales, a 160 basis points increase compared to the previous year. This uptick was primarily attributed to higher merchandise margins and non-cash LIFO favorability, AutoZone reported. Operating expenses accounted for 34.6% of sales, slightly up from the prior year’s 34.1%. Operating profit rose by 10.9% to $743.2 million, with net income increasing by 8.1% to $515 million. Diluted earnings per share also saw a significant uptick, rising by 17.2% to $28.89.
AutoZone’s inventory increased by 4.2% over the same period last year, mainly due to new store openings. Despite this growth, net inventory per store showed improvement, standing at negative $164,000.
Phil Daniele, president and CEO of AutoZone, expressed gratitude to the company’s employees, or “AutoZoners,” for their role in achieving solid earnings.
“I want to thank our AutoZoners for delivering solid earnings in our second fiscal quarter. Their commitment to delivering superior customer service again drove our very solid quarterly performance,” he said. “While a difficult holiday comparison for both Christmas and New Year’s negatively impacted quarterly sales performance, we continue to be encouraged with our sales initiatives, and believe we are well positioned for future growth. Additionally, we are pleased with our international business as we delivered another quarter of double-digit growth. We remain committed to prudently investing capital in our business, and we will be steadfast in our long-term, disciplined approach to increasing operating earnings and cash flows while utilizing our balance sheet effectively.”
During the quarter, AutoZone expanded its footprint by opening 19 new stores in the U.S., while also adding six new stores in Mexico and four in Brazil. As of February 10, 2024, the company operated a total of 7,191 stores across the Americas.
