AutoZone, the leading car-parts retailer, has announced a significant increase in earnings and sales for its fiscal fourth quarter. This growth can be attributed to high international demand and improved profit margins.
Impressive Financial Performance
AutoZone reported a profit of $864.8 million for the quarter ended Aug. 26, compared to $810 million in the same period last year. Earnings per share also saw a notable rise, reaching $46.46, up from $40.51 in the year-ago quarter. Analysts had predicted earnings per share of $45.17, according to FactSet.
Robust Sales Growth
The company’s quarterly sales reached $5.69 billion, a significant increase from $5.35 billion in the previous year. This surpassed analysts’ expectations of $5.61 billion, as reported by FactSet. Furthermore, AutoZone experienced a healthy 1.7% increase in same-store sales domestically and an impressive surge of more than a third internationally.
AutoZone successfully expanded its gross margin, aided by a non-cash LIFO benefit of $45 million and leverage from merchandise margins. The increase in inventory by 2.2% from the previous year is primarily due to the addition of new stores.
AutoZone’s strong performance in the fiscal fourth quarter showcases its ability to meet growing international demand while maintaining a competitive edge in the market. With rising sales and improved profit margins, the company is poised for continued success.