AutoZone Reports First Quarter 2024 Financial Results
Intellectia.AI
AutoZone, Inc. (NYSE:AZO), a leading retailer and distributor of automotive replacement parts and accessories in the Americas, has announced its financial results for the first quarter of fiscal year 2024, ended November 23, 2024.
Key Financial Metrics:
| Metric | Q1 2024 | Q1 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $4.3 billion | - | 2.1% |
| Gross Profit Margin | 53.0% | 52.8% | +16 bps |
| Operating Profit | $841.1 million | - | -0.9% |
| Net Income | $564.9 million | $593.5 million | -4.8% |
| Diluted Earnings Per Share | $32.52 | $32.55 | -0.1% |
AutoZone showed a modest revenue increase of 2.1% year-over-year, reaching $4.3 billion. However, the net income fell to $564.9 million, a 4.8% decrease compared to the same period last year. Despite a slight EPS drop to $32.52, the gross profit margin improved to 53.0%, driven by higher merchandise margins, although operating expenses rose relative to sales.
Revenue Performance by Segment:
| Segment | Revenue Growth | Notes |
|---|---|---|
| Domestic DIY Sales | Improved | Strong average ticket and traffic trends |
| Domestic Commercial Sales | +3.2% | Encouraging end-quarter trends |
| International Sales | +14% (constant currency) | Solid performance despite currency impacts |
AutoZone's domestic DIY and Commercial segments saw positive trends, with a notable 3.2% lift in Commercial sales. International sales outperformed, growing nearly 14% on a constant currency basis despite adverse currency impacts.
Operational Highlights:
- Opened 23 new stores in the U.S., six in Mexico, and five in Brazil.
- Total store count reached 7,387 across all operating regions.
- Continued focus on digital sales channels and international expansion.
Comments from Management:
Phil Daniele, President and CEO, highlighted the company's solid first-quarter performance and improvement in DIY same-store sales. He commended the favorable trends in domestic Commercial sales and international market growth. Daniele emphasized AutoZone's strategic focus on enhancing customer service, expanding market share, and maintaining a disciplined approach to growing earnings and operating cash flow.
Share Repurchase Program:
The company repurchased 160,000 shares for $505.2 million during the quarter, with $1.7 billion remaining under the current share repurchase authorization.
Forward Guidance:
AutoZone's management expressed confidence in the company's growth prospects for the remainder of the fiscal year but did not provide specific forward guidance figures in this release.
This report provides a comprehensive overview of AutoZone's financial performance and strategic initiatives for the first quarter of 2024, reflecting its commitment to delivering shareholder value while navigating various market dynamics.
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