AutoZone (NYSE:AZO) delivered a mixed financial performance in its second-quarter earnings report, with revenue slightly exceeding analyst expectations while earnings came in below projections.
For the quarter, AutoZone reported net sales of $4 billion, marking a 2.4% year-over-year increase and edging past the consensus estimate of $3.98 billion. However, adjusted earnings per share fell short at $28.29, missing the forecasted $29.06.
Same-store sales saw a modest uptick of 0.5%, with domestic locations performing better than international ones. U.S. same-store sales rose 1.9%, while international same-store sales declined 8.2%, largely due to unfavorable currency exchange rates. Adjusting for currency fluctuations, international sales actually grew 9.5%.
Despite the revenue growth, profitability faced headwinds. Gross profit margin remained steady at 53.9%, but operating profit fell 4.9% to $706.8 million, while net income slipped 5.3% to $487.9 million.
The company continued its expansion strategy, adding 45 net new stores during the quarter, bringing its total count to 7,432 across the U.S., Mexico, and Brazil. Additionally, AutoZone repurchased 100,000 shares for $329.4 million, with $1.3 billion still available under its current share repurchase program.
Looking ahead, AutoZone remains optimistic about its momentum going into the second half of the fiscal year, highlighting its strategic focus on strengthening both DIY and commercial sales as it prepares for peak seasonal demand in the spring and summer months.