Financial Performance - Net sales for the twelve weeks ended November 22, 2025, increased by $349.0 million to $4.6 billion, representing an 8.2% growth compared to the prior year period [84]. - Domestic commercial sales rose by $163.7 million to $1.3 billion, marking a 14.5% increase over the comparable prior year period [84]. - Gross profit for the twelve weeks ended November 22, 2025, was $2.4 billion, with a gross margin of 51.0%, down from 53.0% in the prior year period [86]. - Operating profit decreased by 6.8% to $784.2 million, negatively impacted by a non-cash LIFO effect of $98.0 million [80]. - Net income for the twelve weeks ended November 22, 2025, decreased by 6.0% to $530.8 million, with diluted earnings per share down 4.6% to $31.04 [90]. - Net income for the trailing four quarters ended November 22, 2025, was $2.5 billion, compared to $2.6 billion for the prior year [106]. - EBITDAR for the trailing four quarters ended November 22, 2025, was $4.8 billion, reflecting the company's operational performance [108]. Capital Expenditures and Investments - Capital expenditures for the twelve weeks ended November 22, 2025, were $314.2 million, up from $247.0 million in the prior year period, driven by growth initiatives [93]. - The company plans to increase investments in growth initiatives, including new stores and hub expansions, during fiscal 2026 compared to fiscal 2025 [95]. - The company anticipates relying primarily on internally generated funds and available borrowing capacity for capital expenditures and stock repurchases [97]. Tax and Debt Management - The effective income tax rate for the twelve weeks ended November 22, 2025, was 21.7%, down from 23.0% in the prior year period [89]. - The effective tax rate over the trailing four quarters ended November 22, 2025, was 20.0%, compared to 20.5% for the prior year [111]. - The adjusted debt to EBITDAR ratio as of November 22, 2025, was 2.5:1, consistent with the previous year [100]. - The company plans to maintain its investment grade credit ratings by targeting a ratio of adjusted debt to EBITDAR [100]. - A net decrease of $179.1 million in commercial paper was reported as of November 22, 2025 [116]. - The company expects to obtain financing based on current credit ratings and favorable experiences in the debt markets [97]. Debt Valuation and Interest Rate Impact - The fair value of the Company's debt was estimated at $8.7 billion as of November 22, 2025, and $8.9 billion as of August 30, 2025 [117]. - The fair value of debt exceeds the carrying value by $91.6 million at November 22, 2025, and $94.4 million at August 30, 2025 [117]. - The Company had $569.5 million and $748.6 million of variable rate debt outstanding at November 22, 2025, and August 30, 2025, respectively [117]. - A one percentage point increase in interest rates would negatively impact pre-tax earnings and cash flows by $5.7 million in fiscal 2026 for variable rate debt [117]. - The Company had outstanding fixed rate debt of $8.1 billion, net of unamortized debt issuance costs of $46.4 million at November 22, 2025 [117]. - A one percentage point increase in interest rates would reduce the fair value of fixed rate debt by $443.3 million at November 22, 2025 [117]. Store Expansion - The company opened 53 net new stores during the twelve weeks ended November 22, 2025, compared to 34 in the prior year period [93].

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Financial Data and Key Metrics Changes - The LIFO effect for Q1 was just under $100 million, and for Q2, it is expected to be around $60 million due to higher incoming costs and tariffs [12][13][14] Business Line Data and Key Metrics Changes - The company has been diversifying its sourcing strategies across multiple countries and categories to mitigate tariff impacts and control costs [14] Market Data and Key Metrics Changes - The company opened 89 stores in Mexico and 7 or 8 in Brazil last year, indicating a strong international expansion strategy [15][16] Company Strategy and Development Direction - The long-term strategy includes opening around 300 stores domestically and 200 stores internationally by 2028, aiming for a total of approximately 500 stores globally [16] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing excellent customer service and maintaining a sustainable supply chain to meet customer needs [14][17] Other Important Information - The company successfully re-elected all 11 directors and ratified the appointment of Ernst & Young LLP as the independent auditor for fiscal year 2026 [10] Q&A Session Summary Question: What is the LIFO effect due to the tariffs, and are there any changes in the supply chain? - The LIFO effect is primarily caused by higher incoming costs, with charges for Q1 at just under $100 million and expected to be around $60 million for Q2 due to tariffs [12][13] - The company has been working on diversifying its sourcing strategies since the first tariffs in 2016 and 2017 to mitigate risks and control costs [14] Question: What is the strategy for international expansion, especially in Mexico? - The company plans to continue its expansion strategy in Mexico and Brazil, having opened 89 stores in Mexico last year and aiming for a total of 500 stores globally by 2028 [15][16]

Financial Data and Key Metrics Changes - The LIFO effect for Q1 was just under $100 million, and for Q2, it is expected to be around $60 million due to higher incoming costs and tariffs [12][13][14] Business Line Data and Key Metrics Changes - The company has been diversifying its sourcing strategies across multiple countries and categories to mitigate tariff impacts and control costs [14] Market Data and Key Metrics Changes - The company opened 89 stores in Mexico and 7 or 8 in Brazil last year, indicating a strong international expansion strategy [15][16] Company Strategy and Development Direction - The long-term strategy includes opening around 300 stores domestically and 200 stores internationally by 2028, aiming for a total of approximately 500 stores globally [16] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing exceptional customer service and expressed confidence in the company's mission moving forward [17] Other Important Information - The company successfully re-elected all 11 directors and ratified the appointment of Ernst & Young LLP as the independent auditor for fiscal year 2026 [10] Q&A Session Summary Question: What is the LIFO effect due to the tariffs, and are there any changes in the supply chain? - The LIFO effect is primarily caused by higher incoming costs, with charges expected to continue due to tariffs [12][13] - The company has been working on diversifying its sourcing strategies since 2016 to mitigate risks and control costs [14] Question: What is the strategy for international expansion, especially in Mexico? - The company plans to continue its expansion in Mexico and Brazil, with a goal of opening around 500 stores globally by 2028 [15][16]

Financial Data and Key Metrics Changes - The LIFO effect for Q1 was just under $100 million, and for Q2, it is expected to be around $60 million due to higher incoming costs and tariffs [12][13] Business Line Data and Key Metrics Changes - The company opened 89 stores in Mexico and 7 or 8 in Brazil last year, indicating a strong focus on international expansion [13] Market Data and Key Metrics Changes - The company is diversifying its sourcing strategies across multiple countries and categories to mitigate tariff impacts and ensure a sustainable supply chain [13] Company Strategy and Development Direction - The long-term strategy includes opening around 300 stores domestically and 200 stores internationally by 2028, aiming for a total of approximately 500 stores globally [13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of providing excellent customer service and maintaining a strong commitment to their mission [15] Other Important Information - The appointment of Ernst & Young LLP as the company's Independent Registered Public Accounting Firm for fiscal year 2026 was ratified [10] Q&A Session All Questions and Answers Question: What is the LIFO effect due to the tariffs, and are there any changes in the supply chain? - The LIFO effect is caused by incoming costs being higher than current inventory, with charges for Q1 just under $100 million and expected to be around $60 million for Q2 due to higher tariffs [12] - The company has been working on changing supply chain strategies since the first tariffs in 2016 and 2017, focusing on diversifying sourcing and having multiple suppliers to control costs [13] Question: What is the strategy for international expansion in Mexico? - The company plans to continue its strategy in Mexico and Brazil, having opened 89 stores in Mexico last year and aiming for a total of 500 stores globally by 2028 [13]

Core Viewpoint - AutoZone, while not in the spotlight of current technological trends, demonstrates strong long-term performance and growth potential, making it a noteworthy investment opportunity [1]. Financial Performance - AutoZone's stock has underperformed compared to the S&P 500 over the past one and three years, with increases of 3% and 39% respectively, while the S&P 500 has seen double-digit returns [3]. - The stock has declined 21% from its all-time high of $4,354.54 reached in September, following disappointing financial results for Q1 of fiscal 2026, which ended on November 22 [4]. - Same-store sales increased by 5.5% year-over-year, and the company opened 53 net new stores during this period [4]. - Gross margin was negatively impacted by inflationary pressures on inventory, leading to a 6.8% decrease in operating income compared to Q1 2025 [5]. - Over the last five years, AutoZone's shares have increased by 201%, significantly outperforming the S&P 500, which would have doubled an initial investment [5]. Market Position and Growth Strategy - AutoZone's current market capitalization is $57 billion, with a stock price of $3,445.71 and a price-to-earnings ratio of 23, indicating potential attractiveness for investors [6][10]. - The company has shown consistent revenue growth, with a compound annual growth rate of 6.4% from fiscal 2015 to fiscal 2025, without any down years [8]. - Management plans to aggressively open new locations, indicating ongoing expansion opportunities [8]. Business Model and Profitability - AutoZone operates in the aftermarket auto parts sector, which maintains steady demand regardless of economic conditions, reducing investment risk [9]. - The company reported $2.5 billion in net income and $1.8 billion in free cash flow for fiscal 2025, showcasing strong profitability [9]. - AutoZone has effectively reduced its diluted outstanding share count by 13% over the past three years through stock buybacks [9].

Looking into the current session, AutoZone Inc. (NYSE:AZO) shares are trading at $3456.97, after a 0.35% drop. Over the past month, the stock fell by 10.37%, but over the past year, it actually spiked by 3.19%. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio. Comparing AutoZone P/E Against Its PeersThe P/E ratio measures the current share price to the company's EPS. It is used b ...

Whales with a lot of money to spend have taken a noticeably bearish stance on AutoZone.Looking at options history for AutoZone (NYSE:AZO) we detected 21 trades.If we consider the specifics of each trade, it is accurate to state that 19% of the investors opened trades with bullish expectations and 42% with bearish.From the overall spotted trades, 15 are puts, for a total amount of $1,102,263 and 6, calls, for a total amount of $220,740.Projected Price TargetsBased on the trading activity, it appears that the ...

Core Insights - AutoZone Inc. reported earnings of $31.04 per share for Q1 fiscal 2026, missing the Zacks Consensus Estimate of $32.24 and down from $32.52 in the same quarter of fiscal 2025 [1] - Net sales increased by 8.2% year over year to $4.63 billion, slightly below the Zacks Consensus Estimate of $4.64 billion [1] Financial Performance - Domestic commercial sales reached $1.29 billion, up from $1.12 billion in the prior year [3] - Domestic same-store sales increased by 4.8% [3] - Gross profit rose to $2.35 billion from $2.26 billion year over year [3] - Operating profit decreased by 6.8% year over year to $784.2 million [3] Store Expansion - AutoZone opened 39 new stores in the U.S., 12 in Mexico, and 2 in Brazil during the quarter [4] - The total store count reached 7,710, with 6,666 in the U.S., 895 in Mexico, and 149 in Brazil [4] Inventory and Cash Position - Inventory increased by 13.9% year over year, with net inventory per store at negative $145,000 compared to negative $166,000 a year ago [4] - As of Nov. 22, 2025, cash and cash equivalents were $287.6 million, up from $271.8 million [5] - Total debt decreased to $8.62 billion from $8.79 billion [5] Share Repurchase - The company repurchased 108,000 shares for $431.1 million at an average price of $3,999 per share, with $1.7 billion remaining under its current share repurchase authorization [5]

Core Viewpoint - AutoZone, Inc. is positioned for potential growth with a recent price target set at $4,650, indicating a possible increase of approximately 37.17% from its current stock price of $3,390 [2][5][6] Group 1: Company Overview - AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the United States, operating thousands of stores nationwide [1] - The company competes with major players in the automotive parts industry, including Advance Auto Parts and O'Reilly Auto Parts [1] Group 2: Stock Performance - AutoZone's stock recently experienced a modest pullback, currently priced at $3,409.07, down 2.51% or $87.70, but remains in a strong long-term uptrend [3][6] - The stock has traded between $3,388.79 and $3,503.09 on the day, with a market capitalization of approximately $57 billion [4][6] - Over the past year, the stock reached a high of $4,388.11 and a low of $3,162, indicating significant volatility [4] Group 3: Market Sentiment - The recent price target from Roth Capital and current market conditions suggest that AutoZone may have significant growth potential, with the price dip viewed as a buying opportunity [5][6] - Active investor interest is reflected in the trading volume of 42,741 shares on the NYSE for the day [4][6]