AutoZone Q4 Earnings Top Estimates Aided By Solid International Stores' Performance

AutoZone Inc AZO reported fourth-quarter FY23 sales growth of 6.4% year-on-year to $5.69 billion, beating the analyst consensus of $5.61 billion.

EPS of $46.46 beat the consensus of $45.12.

Domestic same-store sales increased 1.7% in the quarter, while International rose 34.1%. Total same-store sales grew 4.5%.

Gross margin expanded 118 basis points Y/Y to 52.7%. The operating margin was 21.4%, and operating income climbed 10.8% Y/Y to $1.2 billion.

AutoZone held $277.1 million in cash and equivalents as of August 26, 2023.

AutoZone opened 53 new stores in the U.S. in the quarter. As of August 26, 2023, AutoZone had 6,300 stores in the U.S.,740 in Mexico, and 100 in Brazil, for a total store count of 7,140.

The company had $1.8 billion remaining under its share repurchase authorization at year end.

The company's inventory increased by 2.2%, driven by its growth initiatives.

"While we started this quarter slowly, we saw improvements in the back half of our quarter. Despite lower than expected growth in domestic Commercial, we believe that the initiatives we have in place and are implementing will drive stronger growth in fiscal 2024," said Bill Rhodes, Chairman, President and CEO.

Price Action: AZO shares closed lower by 0.30% at $2,522.10 on Monday.