AutoZone's Q1 Revenue Misses By A Whisker Despite Same-Store Sales Growth: Here's Details

AutoZone Inc AZO reported Q1 FY24 sales growth of 5.1% Y/Y to $4.19 billion, marginally missing the analyst consensus of $4.198 billion.

Domestic same-store sales increased 1.2% in the quarter, while International rose 25.1%. Total company same-store sales grew 3.4%.

Gross margin expanded 279 basis points Y/Y to 52.8%. Operating profit rose 17.4% Y/Y to $848.6 million in the quarter.

Gross profit growth was led by 208 basis points ($83 million net) non-cash LIFO favorability, with the remaining leverage primarily from favorable supply chain costs and increased merchandise margins.

EPS of $32.55 beat the consensus of $31.57.

AutoZone held $283.0 million in cash and cash equivalents as of November 18, 2023.

AutoZone repurchased 580 thousand shares worth $1.5 billion in the quarter. At the end of Q1, the company had $333.1 million remaining under its current share repurchase authorization.

The company's inventory increased by 3.0% Y/Y, driven by new store growth. AutoZone opened 17 new stores in the U.S. and closed one in the U.S., five new stores in Mexico, and four in Brazil in the quarter. 

As of November 18, 2023, AutoZone had 6,316 stores in the U.S.,745 in Mexico, and 104 in Brazil, for a total store count of 7,165.

"Our domestic sales results were solid despite tough comparisons from a year ago, while our international business continues to deliver exceptionally strong sales growth. We remain committed to driving sales and earnings growth throughout fiscal 2024, while returning cash to our shareholders," said Bill Rhodes, Chairman, President and Chief Executive Officer.

Also Read: AutoZone Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Price Action: AZO shares are trading higher by 1.22% at $2,696.66 premarket on the last check Tuesday.

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