AutoZone joins the $1 billion club

The nation’s largest automotive retailer has entered some rarified retailing air after reporting its 33rd consecutive quarter of double digit profit growth during the fourth quarter ended August 30.



The operator of 5,391 stores in the U.S., Mexico and Brazil said its fourth quarter profit increased 7.4% to $373.7 million while earnings per share increased 15.6% to $11.28, compared to prior year profits of $371.2 million, or $9.76 a share.



The earnings per share were two cents less than analysts forecast and top line growth decelerated from the company’s third quarter, but AutoZone managed to achieve a distinction of another type. For the first time, the company’s profits on a 52 week basis exceed the $1 billion mark and put the company in some special company within the retail industry.



“For the year, we reached many milestones which included generating over $1 billion dollars in net income, opening 424 net additional commercial programs, and reaching an agreement to acquire Interamerican Motor Corporation,” said AutoZone chairman, president and CEO Bill Rhodes. “As we have routinely stated, we will remain committed to our disciplined approach to growing operating earnings and utilizing our capital effectively.”



The company’s fourth quarter sales increased 4.5% to $3 billion and same store sales at U.S. stores increased 2.1%. Full year sales increased 5.6% to $9.5 billion with same store sales up 2.8%.



During the quarter, AutoZone opened 83 new stores in the U.S., 28 stores in Mexico and one unit in Brazil to end the year with 4,984 U.S. stores, 402 Mexican stores and five Brazilian stores.