AutoZone Breezes Past Q2 Expectations; Inventory Surges 13.9%

AutoZone Inc AZO reported second-quarter FY23 sales growth of 9.5% year-on-year to $3.69 billion, beating the consensus of $3.56 billion.
EPS of $24.64 beat the consensus of $21.91.
Domestic same-store sales increased 5.3% in the quarter.
Gross margin contracted 69 basis points Y/Y to 52.3%. Operating profit increased 6.9% to $670.0 million.
AutoZone held $301.3 million in cash and equivalents as of Feb. 11, 2023. Adjusted debt totaled $9.7 billion.
AutoZone opened 30 new stores in the U.S. in the quarter. As of Feb. 11, 2023, AutoZone had 6,226 stores in the U.S., 707 in Mexico, and 81 in Brazil, for a total store count of 7,014.
The company had $1.8 billion remaining under its share repurchase authorization at quarter end.
The company's inventory increased by 13.9%, driven by its growth initiatives and inflation.
Price Action: AZO shares are trading lower by 2.54% at $2,506.79 on the last check Tuesday.

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