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]

Core Insights - AutoZone, Inc. is a leading retailer and distributor of automotive replacement parts and accessories in the U.S., operating thousands of stores across the U.S., Mexico, and Brazil [1] - Roth Capital maintains a "Buy" rating for AutoZone, adjusting the price target from $4,750 to $4,650, with the stock currently priced at approximately $3,493.36, reflecting a decrease of 7.26% from previous levels [2][6] - The company has opened 53 new stores globally in the latest quarter, bringing its total to 7,710 stores, with 39 in the U.S., 12 in Mexico, and 2 in Brazil [3][6] - CEO Phil Daniele expressed satisfaction with the company's performance and plans to continue expansion throughout the fiscal year, aiming to strengthen its market position [4] - AutoZone's market capitalization is approximately $58.65 billion, with a trading volume of 337,490 shares on the NYSE [4][6] - The stock has traded between $3,162 and $4,388.11 over the past year, indicating ongoing challenges but a focus on growth strategy [5]

Core Viewpoint - AutoZone, Inc. reported first-quarter earnings and sales that fell short of Wall Street expectations, with earnings per share at $31.04 and sales at $4.629 billion, both missing analyst estimates [1] Financial Performance - Quarterly earnings per share were $31.04, below the consensus estimate of $32.37 [1] - Quarterly sales reached $4.629 billion, reflecting an 8.2% year-over-year increase, but still fell short of the expected $4.637 billion [1] Strategic Initiatives - The company opened 53 net new stores globally during the quarter and plans to aggressively continue store openings throughout the fiscal year to gain market share, as stated by CEO Phil Daniele [2] Stock Market Reaction - Following the earnings announcement, AutoZone shares increased by 2.8%, trading at $52.99 [2] Analyst Ratings and Price Targets - BMO Capital maintained an Outperform rating, lowering the price target from $4,600 to $4,400 [3] - Guggenheim maintained a Buy rating, cutting the price target from $4,600 to $4,400 [3] - Mizuho maintained an Outperform rating, reducing the price target from $4,050 to $3,850 [3] - Barclays maintained an Overweight rating, lowering the price target from $4,510 to $4,318 [3] - DA Davidson maintained a Buy rating, reducing the price target from $4,850 to $4,500 [3] - UBS maintained a Buy rating, lowering the price target from $4,800 to $4,325 [3]