Why AutoZone Shares Are Sliding Today

AutoZone, Inc. AZO reported third-quarter FY23 sales growth of 5.8% year-on-year to $4.09 billion, missing the consensus of $4.12 billion.
The automotive replacement parts and accessories company registered an EPS of $34.12, beating the consensus of $31.42.
Revenues missed estimates on weaker-than-expected sales for the month of March.
Domestic same-store sales increased by 1.9% in the quarter.
Gross margin expanded 56 basis points Y/Y to 52.5%.
AutoZone held $274.92 million in cash and equivalents as of May 6, 2023. Adjusted debt totaled $10.05 billion.
AutoZone opened 22 new stores in the U.S. in the quarter. As of May 6, 2023, the company had 6,248 stores in the U.S., 713 in Mexico, and 83 in Brazil, totaling 7,044.
The company's inventory increased 7.4% over the same period last year, driven by inflation and its growth initiatives.
"We are excited about our initiatives and believe we are well positioned for future growth," said Chairman & CEO Bill Rhodes.
Price Action: AZO shares are trading lower by 5.26% at $2,482 on the last check Tuesday.

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