Constant Currency | |||||
12 Weeks | 12 Weeks* | ||||
Domestic | 0.3 | % | 0.3 | % | |
International | 1.0 | % | 13.7 | % | |
0.4 | % | 1.8 | % | ||
* Excludes impacts from fluctuations of foreign exchange rates. | |||||
For the quarter, gross profit, as a percentage of sales, was 53.0%, an increase of 16 basis points versus the prior year driven by higher merchandise margins. Operating expenses, as a percentage of sales, were 33.3% versus last year at 32.6%.
Operating profit decreased 0.9% to
Under its share repurchase program, AutoZone repurchased 160 thousand shares of its common stock during the first quarter, at an average price per share of
The Company’s inventory increased 8.7% over the same period last year and net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative
“I would like to thank all our AutoZoners across the globe for their efforts in helping us deliver solid first quarter results. We were pleased with the progress in our DIY same store sales result from the prior quarter as average ticket and traffic trends improved. Our domestic Commercial sales were up 3.2% and we were encouraged by the improving trends seen at the end of the quarter. Our international businesses continued to perform well with same store sales up just under 14% on a constant currency basis. While currency rate moves depressed reported sales and earnings growth, our international performance remains encouraging as we continue to focus on opening more stores in these markets. We feel we are well positioned for growth heading into the remainder of the fiscal year, as we believe the initiatives we have in place to improve customer service and grow market share are on track. As we continue to invest in our business, we remain committed to our disciplined approach of a focus on increasing earnings and operating cash flow, all while delivering strong shareholder value,” said
During the quarter ended
AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the
AutoZone will host a conference call this morning,
This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.
Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions, although not all forward-looking statements contain such identifying words. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties could materially and adversely affect our business and are discussed in more detail in the “Risk Factors” section in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended
Contact Information:
Financial:
Media:
AutoZone's 1st Quarter Highlights - Fiscal 2025 |
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Condensed Consolidated Statements of Operations |
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1st Quarter, FY2025 |
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(in thousands, except per share data) | |||||||||||||
GAAP Results | |||||||||||||
12 Weeks Ended | 12 Weeks Ended | ||||||||||||
Net sales | $ | 4,279,641 | $ | 4,190,277 | |||||||||
Cost of sales | 2,011,584 | 1,976,261 | |||||||||||
Gross profit | 2,268,057 | 2,214,016 | |||||||||||
Operating, SG&A expenses | 1,426,908 | 1,365,412 | |||||||||||
Operating profit (EBIT) | 841,149 | 848,604 | |||||||||||
Interest expense, net | 107,629 | 91,384 | |||||||||||
Income before taxes | 733,520 | 757,220 | |||||||||||
Income tax expense | 168,587 | 163,757 | |||||||||||
Net income | $ | 564,933 | $ | 593,463 | |||||||||
Net income per share: | |||||||||||||
Basic | $ | 33.40 | $ | 33.51 | |||||||||
Diluted | $ | 32.52 | $ | 32.55 | |||||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 16,913 | 17,709 | |||||||||||
Diluted | 17,370 | 18,234 | |||||||||||
Selected Balance Sheet Information | |||||||||||||
(in thousands) | |||||||||||||
Cash and cash equivalents | $ | 304,018 | $ | 282,981 | $ | 298,172 | |||||||
Merchandise inventories | 6,274,070 | 5,774,467 | 6,155,218 | ||||||||||
Current assets | 7,420,550 | 6,956,801 | 7,306,759 | ||||||||||
Property and equipment, net | 6,281,103 | 5,713,157 | 6,183,539 | ||||||||||
Operating lease right-of-use assets | 3,086,857 | 2,998,672 | 3,057,780 | ||||||||||
Total assets | 17,465,762 | 16,292,570 | 17,176,538 | ||||||||||
Accounts payable | 7,498,696 | 7,182,948 | 7,355,701 | ||||||||||
Current liabilities | 8,888,570 | 8,785,622 | 8,714,243 | ||||||||||
Operating lease liabilities, less current portion | 2,982,977 | 2,910,727 | 2,960,174 | ||||||||||
Total Debt | 9,012,539 | 8,583,523 | 9,024,381 | ||||||||||
Stockholders' deficit | (4,672,921 | ) | (5,213,671 | ) | (4,749,614 | ) | |||||||
Working capital | (1,468,020 | ) | (1,828,821 | ) | (1,407,484 | ) | |||||||
AutoZone's 1st Quarter Highlights - Fiscal 2025 |
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Condensed Consolidated Statements of Operations |
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Adjusted Debt / EBITDAR |
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(in thousands, except adjusted debt to EBITDAR ratio) | ||||||||||||||||
Trailing 4 Quarters | ||||||||||||||||
Net income | $ | 2,633,897 | $ | 2,582,571 | ||||||||||||
Add: Interest expense | 467,823 | 340,033 | ||||||||||||||
Income tax expense | 679,533 | 676,953 | ||||||||||||||
EBIT | 3,781,253 | 3,599,557 | ||||||||||||||
Add: Depreciation and amortization | 562,704 | 508,548 | ||||||||||||||
Rent expense(1) | 454,189 | 412,210 | ||||||||||||||
Share-based expense | 109,450 | 96,995 | ||||||||||||||
EBITDAR | $ | 4,907,596 | $ | 4,617,310 | ||||||||||||
Debt | $ | 9,012,539 | $ | 8,583,523 | ||||||||||||
Financing lease liabilities | 388,847 | 285,145 | ||||||||||||||
Add: Rent x 6(1) | 2,725,134 | 2,473,260 | ||||||||||||||
Adjusted debt | $ | 12,126,520 | $ | 11,341,928 | ||||||||||||
Adjusted debt to EBITDAR | 2.5 | 2.5 | ||||||||||||||
Adjusted Return on |
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(in thousands, except ROIC) | ||||||||||||||||
Trailing 4 Quarters | ||||||||||||||||
Net income | $ | 2,633,897 | $ | 2,582,571 | ||||||||||||
Adjustments: | ||||||||||||||||
Interest expense | 467,823 | 340,033 | ||||||||||||||
Rent expense(1) | 454,189 | 412,210 | ||||||||||||||
Tax effect(2) | (189,013 | ) | (156,466 | ) | ||||||||||||
Adjusted after-tax return | $ | 3,366,896 | $ | 3,178,348 | ||||||||||||
Average debt(3) | $ | 8,849,457 | $ | 7,392,640 | ||||||||||||
Average stockholders' deficit(3) | (4,862,353 | ) | (4,377,447 | ) | ||||||||||||
Add: Rent x 6(1) | 2,725,134 | 2,473,260 | ||||||||||||||
Average financing lease liabilities(3) | 349,471 | 291,567 | ||||||||||||||
Invested capital | $ | 7,061,709 | $ | 5,780,020 | ||||||||||||
Adjusted After-Tax ROIC | 47.7 | % | 55.0 | % | ||||||||||||
(1)The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended |
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Trailing 4 Quarters | ||||||||||||||||
(in thousands) | ||||||||||||||||
Total lease cost, per ASC 842 | $ | 602,034 | $ | 536,217 | ||||||||||||
Less: Financing lease interest and amortization |
(108,665 | ) | (90,864 | ) | ||||||||||||
Less: Variable operating lease components, related to insurance and common area maintenance | (39,180 | ) | (33,143 | ) | ||||||||||||
Rent expense | $ | 454,189 | $ | 412,210 | ||||||||||||
(2)Effective tax rate over the trailing four quarters ended |
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(3)All averages are computed based on trailing five quarter balances. |
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Other Selected Financial Information |
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(in thousands) | ||||||||||||||||
Cumulative share repurchases ($ since fiscal 1998) | $ | 37,491,245 | $ | 35,316,947 | ||||||||||||
Remaining share repurchase authorization ($) | 1,658,755 | 333,053 | ||||||||||||||
Cumulative share repurchases (shares since fiscal 1998) | 155,341 | 154,612 | ||||||||||||||
Shares outstanding, end of quarter | 16,810 | 17,326 | ||||||||||||||
12 Weeks Ended | 12 Weeks Ended | |||||||||||||||
Depreciation and amortization | $ | 133,173 | $ | 120,224 | ||||||||||||
Cash flow from operations | 811,803 | 830,259 | ||||||||||||||
Capital spending | 247,035 | 235,428 | ||||||||||||||
AutoZone's 1st Quarter Highlights - Fiscal 2025 |
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Condensed Consolidated Statements of Operations |
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Selected Operating Highlights |
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Store Count & Square Footage |
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12 Weeks Ended | 12 Weeks Ended | ||||||||||||||||||
Domestic: | |||||||||||||||||||
Beginning stores | 6,432 | 6,300 | |||||||||||||||||
Stores opened | 23 | 17 | |||||||||||||||||
Stores closed | - | (1 | ) | ||||||||||||||||
Ending domestic stores | 6,455 | 6,316 | |||||||||||||||||
Relocated stores | 2 | - | |||||||||||||||||
Stores with commercial programs | 5,935 | 5,803 | |||||||||||||||||
Square footage (in thousands) | 42,844 | 41,749 | |||||||||||||||||
Beginning stores | 794 | 740 | |||||||||||||||||
Stores opened | 6 | 5 | |||||||||||||||||
Ending |
800 | 745 | |||||||||||||||||
Beginning stores | 127 | 100 | |||||||||||||||||
Stores opened | 5 | 4 | |||||||||||||||||
Ending |
132 | 104 | |||||||||||||||||
Total | 7,387 | 7,165 | |||||||||||||||||
34 | 25 | ||||||||||||||||||
Square footage (in thousands) | 49,781 | 48,062 | |||||||||||||||||
Square footage per store | 6,739 | 6,708 | |||||||||||||||||
Sales Statistics |
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($ in thousands, except sales per average square foot) | |||||||||||||||||||
Total AutoZone Stores (Domestic, |
12 Weeks Ended | 12 Weeks Ended | Trailing 4 Quarters | Trailing 4 Quarters | |||||||||||||||
Sales per average store | $ | 570 | $ | 575 | $ | 2,506 | $ | 2,453 | |||||||||||
Sales per average square foot | $ | 85 | $ | 86 | $ | 373 | $ | 366 | |||||||||||
Total auto parts sales | $ | 4,199,732 | $ | 4,115,694 | $ | 18,235,314 | $ | 17,344,925 | |||||||||||
% Increase vs. LY | 2.0 | % | 5.1 | % | 5.1 | % | 6.6 | % | |||||||||||
Domestic Commercial | |||||||||||||||||||
Total domestic commercial sales | $ | 1,128,237 | $ | 1,092,920 | $ | 4,918,080 | $ | 4,657,020 | |||||||||||
% Increase vs. LY | 3.2 | % | 5.7 | % | 5.6 | % | 6.7 | % | |||||||||||
Average sales per program per week | $ | 15.9 | $ | 15.9 | $ | 15.8 | $ | 15.9 | |||||||||||
% Increase vs. LY | 0.0 | % | (0.6 | %) | (0.6 | %) | 1.3 | % | |||||||||||
All Other, including |
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All other sales | $ | 79,909 | $ | 74,583 | $ | 344,318 | $ | 317,493 | |||||||||||
% Increase vs. LY | 7.1 | % | 7.8 | % | 8.4 | % | 7.7 | % | |||||||||||
(1)Fiscal 2024 results include an additional week of sales of approximately |
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12 Weeks Ended | 12 Weeks Ended | ||||||||||||||||||
Same store sales(2) | |||||||||||||||||||
Domestic | 0.3 | % | 1.2 | % | |||||||||||||||
International | 1.0 | % | 25.1 | % | |||||||||||||||
0.4 | % | 3.4 | % | ||||||||||||||||
International - Constant Currency | 13.7 | % | 10.9 | % | |||||||||||||||
1.8 | % | 2.1 | % | ||||||||||||||||
(2)Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate. |
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Inventory Statistics (Total Stores) | |||||||||||||||||||
as of | as of | ||||||||||||||||||
Accounts payable/inventory | 119.5 | % | 124.4 | % | |||||||||||||||
($ in thousands) | |||||||||||||||||||
Inventory | $ | 6,274,070 | $ | 5,774,467 | |||||||||||||||
Inventory per store | 849 | 806 | |||||||||||||||||
Net inventory (net of payables) | (1,224,626 | ) | (1,408,481 | ) | |||||||||||||||
Net inventory/per store | (166 | ) | (197 | ) | |||||||||||||||
Trailing 5 Quarters | |||||||||||||||||||
Inventory turns | 1.4 | x | 1.5 | x | |||||||||||||||
Source: AutoZone, Inc.