AutoZone's Q2 Earnings Tops Estimates

AutoZone Inc AZO reported second-quarter FY21 sales growth of 15.8% year-on-year, to $3.37 billion, beating the consensus of $3.17 billion. Domestic same-store sales for the quarter increased 13.8%.
EPS of $22.30 beat the consensus of $17.79.
The gross margin contracted 59 basis points Y/Y to 53%. The operating margin was 18.6%, and operating income for the rose 30.1% Y/Y to $626.7 million.
AutoZone held $239.4 million in cash and equivalents as of February 12, 2022. Adjusted debt totaled $8.2 billion.
AutoZone opened 26 new stores and closed one in the U.S. in the quarter. As of February 12, 2022, AutoZone had 6,091 stores in the U.S., 669 in Mexico, and 55 in Brazil, for a total store count of 6,815.
At the end of Q2, the company had $958 million remaining under its current share repurchase authorization.
The company's inventory increased 6.2%, driven by new stores, hubs, and megahubs, with the remaining growth primarily due to inflation.
Price Action: AZO shares are trading higher by 1.95% at $1,899.76 on the last check Tuesday.

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