AutoZone, Inc. (NYSE:AZO) Q1 2023 Results Conference Call December 6, 2022 10:00 AM ET Company Participants Brian Campbell - VP, IR and Tax/Treasurer Bill Rhodes - Chairman, President and CEO Jamere Jackson - EVP and CFO Conference Call Participants Brian Nagel - Oppenheimer Simeon Gutman - Morgan Stanley Kate McShane - Goldman Sachs Chris Horvers - JP Morgan Michael Lasser - UBS Daniel Imbro - Stephens David Bellinger - MKM Partners Mike Baker - D.A. Davidson Operator Good morning, ladies and gentlemen, an ...

Financial Data and Key Metrics Changes - The company reported total sales of over $5.3 billion for Q4 2022, an increase of 8.9% year-over-year, and total sales for FY 2022 reached $16.3 billion, up 11.1% compared to the previous fiscal year [22][23] - Net income for Q4 was $810 million, reflecting a 3.1% increase from the prior year's quarter, while earnings per share (EPS) rose to $40.51, up 13.4% [34][35] - For FY 2022, net income was $2.4 billion, up 11.9%, and EPS was $117.19, an increase of 23.1% [35] Business Line Data and Key Metrics Changes - Domestic same-store sales increased by 6.2% in Q4, following a 4.3% increase in the same quarter last year, resulting in a two-year comp of 10.5% and a three-year comp of 32.3% [8][15] - Commercial sales reached $1.442 billion in Q4, marking a record and a 22% increase year-over-year, with total commercial sales for FY 2022 at $4.2 billion, up over 26% from the previous year [8][25] - DIY same-store sales grew by 1.1% in Q4, with a full-year increase of 2.9%, reflecting strong performance despite challenging comparisons from the previous year [10][29] Market Data and Key Metrics Changes - The company experienced a decline in retail traffic by approximately 7%, while ticket size increased by about 8%, indicating a shift in consumer behavior towards higher-value purchases [12][28] - The Northeast and Midwest regions showed stronger sales performance initially, but this trend reversed as other regions heated up, demonstrating geographic variability in sales growth [14] Company Strategy and Development Direction - The company aims to enhance its supply chain through expanded hub and mega-hub rollouts, with a target of reaching 200 mega-hubs and 300 regular hubs [20][27] - Continued focus on the Duralast brand and leveraging technology to improve efficiency and delivery times are key strategies for future growth [55][56] - The company is committed to international expansion, particularly in Mexico and Brazil, where it plans to open more stores and leverage learnings from the U.S. market [30][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of sales gains achieved during the pandemic, despite challenges posed by inflation and rising interest rates [18][19] - The company anticipates a resilient DIY business in FY 2023, supported by a growing and aging car park and a challenging new and used car sales market [29] - Management acknowledged the need to exit "pandemic mode" and improve execution across all operations to maintain competitive positioning [43][44] Other Important Information - The company generated $1.2 billion in operating cash flow for Q4, with $900 million in free cash flow after capital expenditures [35] - A significant LIFO charge of $100 million is expected in the first quarter of FY 2023, primarily due to higher freight costs, but management anticipates this will reverse over time [32][70] Q&A Session Summary Question: Update on supply chain fill rates - Management acknowledged ongoing challenges in supply chain fill rates, with some categories performing better than others, but overall in-stock rates remain below pre-pandemic levels [46][47] Question: Pricing changes in the market - Management confirmed that pricing discipline remains intact, with consistent pricing strategies to recover inflation without significant changes in cadence [48][49] Question: DIY business performance expectations - Management noted improvements in discretionary product sales as gas prices decreased and expressed cautious optimism about achieving positive comps in FY 2023 [51][53] Question: Future growth strategies for the commercial business - Management outlined ongoing strategies focused on expanding hub and mega-hub coverage, enhancing technology, and improving service to drive future growth [54][55] Question: LIFO charges and their impact - Management explained that LIFO charges are expected to be temporary and will likely reverse as freight costs stabilize, with a focus on maintaining operational discipline [59][70]

AutoZone, Inc. (NYSE:AZO) Q3 2022 Earnings Conference Call May 24, 2022 10:00 AM ET Company Participants Bill Rhodes - Chairman, President and Chief Executive Officer Jamere Jackson - Executive Vice President and Chief Financial Officer Brian Campbell - Vice President, Treasurer, Investor Relations and Tax Conference Call Participants Bret Jordan - Jefferies Christopher Hoover - JPMorgan Simeon Gutman - Morgan Stanley Michael Lasser - UBS Mike Baker - D.A. Davidson Scot Ciccarelli - Truist Securities Daniel ...

AutoZone, Inc. (NYSE:AZO) Q2 2022 Earnings Conference Call March 1, 2022 10:00 AM ET Company Participants Brian Campbell - Vice President-Treasury, Tax and Investor Relations & Treasurer Bill Rhodes - Chairman, President & Chief Executive Officer Jamere Jackson - Executive Vice President & Chief Financial Officer Conference Call Participants Bret Jordan - Jefferies Zach Fadem - Wells Fargo Brian Nagel - Oppenheimer Christian Carlino - JPMorgan Jackie Sussman - Morgan Stanley Operator Good day, ladies and ge ...