In the fiscal second quarter, AutoZone saw a significant increase in earnings as sales saw a rise and supply chain costs decreased. The car-parts retailer reported a profit of $515 million for the quarter ended Feb. 10, up from $476.5 million in the same period the previous year. Earnings per share also saw an increase, reaching $28.89 compared to $24.64 a share in the year-ago quarter.
Sales Growth and Positive Projections
Quarterly sales for AutoZone reached $3.86 billion, showing growth from $3.69 billion last year, surpassing analyst projections of $3.85 billion. Same-store sales in the U.S. experienced a slight increase, while they skyrocketed nearly 24% internationally. Overall, same-store sales across both channels combined saw a positive 3% growth.
Margin Improvement and Operating Costs
AutoZone’s gross margin saw improvement due to higher merchandise margins and more favorable supply chain costs. However, operating costs saw an increase from rising domestic store payroll and technology investments.
Overall, AutoZone’s second-quarter results demonstrate a strong performance with an increase in earnings, sales growth, and improved margins.
For more information, visit www.autozone.com.
