AutoZone Q3 profit beats expectations

Memphis -- AutoZone reported a better-than-expected profit of $309.1 million in its third quarter, up 8.4% from $285.2 million in the year-ago period. Diluted earnings per share increased 13.1% to $9.57 per share, from $8.46 per share in the year-ago quarter. It was the auto retailer’s thirty-fifth consecutive quarter of double digit earnings per share growth.



Sales for the quarter, ended May 9, increased 6.5% to $2.49 billion for the period. Same-store sales increased 2.3%.



Auto Zone is the nation’s largest automotive retailer with more than 5,000 stores.



“AutoZoners across the company remain committed to providing superior service to our customers and that dedication has resulted in consistent, solid performance,” said Bill Rhodes, AutoZone’s chairman, president and CEO. “We continued to diligently work on our inventory availability initiatives, including expanding our multi-deliveries per week to test stores and opening two additional mega hub store locations. Also, the expanded hard parts inventory we have deployed throughout our chain over the last year continues to be a contributor to our sales success.”



A major use of the company’s capital is a share repurchase program which plays a key role in ensuring the double digit earnings per share streak stays alive. AutoZone repurchased 763,000 shares of its common stock for $515 million during the third quarter, at an average price of $675 per share. Year to date, the company has repurchased nearly 1.4 million shares of its common stock for $841 million, at an average price of $611 per share.



During the quarter, AutoZone opened 27 new stores and relocated one store in the U.S., opened seven new stores in Mexico, and opened two new stores in Brazil.