Financial Performance - AutoZone reported fourth-quarter earnings per share of $48.71, missing the analyst consensus estimate of $50.91 [1] - Quarterly sales were $6.242 billion, a 0.6% year-over-year increase, but fell short of the expected $6.245 billion [1] - Adjusted sales, excluding an additional week from the previous year, increased by 6.9% [2] - Total company same-store sales rose by 5.1%, with domestic same-store sales increasing by 4.8% [2] - Gross margin decreased to 51.5%, down 98 basis points year-over-year, impacted by a non-cash LIFO headwind [2] - Operating profit decreased by 7.8% to $1.2 billion, and net income for the quarter was $837.0 million compared to $902.2 million in the prior year [3] Shareholder Actions - The company repurchased 117,000 shares in the fourth quarter at an average price of $3,821, totaling a buyback outlay of $446.7 million [3] - AutoZone exited the quarter with cash and equivalents amounting to $271.803 million [5] Expansion and Strategy - In the quarter ended August 30, 2025, AutoZone opened 91 new stores in the U.S., 45 in Mexico, and 6 in Brazil, totaling 141 net new stores [4] - The international unit reported constant-currency same-store sales growth of 7.2% [4] - The company plans to aggressively open more stores in the upcoming year to enhance market share [5]

Financial Performance - Q4 FY2025 (GAAP) - Net sales increased by 0.6% to $6.243 billion compared to $6.205 billion in Q4 FY24[9] - Operating profit (EBIT) decreased by 7.8% to $1.196 billion from $1.297 billion[9] - Net income decreased by 7.2% to $837 million compared to $902 million[9] - Diluted EPS decreased by 5.6% to $48.71 from $51.58[9] Financial Performance - Q4 FY2025 (Adjusted) - Net sales increased by 6.9% to $6.243 billion compared to $5.840 billion in adjusted Q4 FY24[13] - Operating profit (EBIT) decreased by 1.1% to $1.196 billion from $1.210 billion[13] - Net income decreased by 0.5% to $837 million compared to $841 million[13] - Diluted EPS increased by 1.3% to $48.71 from $48.11[13] Financial Performance - FY2025 (GAAP) - Net sales increased by 2.4% to $18.939 billion compared to $18.490 billion in FY24[18] - Operating profit (EBIT) decreased by 4.7% to $3.610 billion from $3.789 billion[18] - Net income decreased by 6.2% to $2.498 billion compared to $2.662 billion[18] - Diluted EPS decreased by 3.1% to $144.87 from $149.55[18] Expansion and Stock Repurchase - The company repurchased $447 million of AutoZone stock during Q4 FY25[11] - The company repurchased $1.5 billion of AutoZone stock during FY25[20] - The company opened 304 net new stores in FY25, a 42.7% increase compared to the previous year[29]

Company Overview - Can View's stock is rallying approximately 6.5% following the company's pushback against claims linking Tylenol to autism made by the Trump administration [1][2] - The parent company asserts that independent science shows no causal link between acetaminophen and autism, countering the FDA's recent commentary on the potential association [2][3] FDA Commentary - The FDA acknowledged studies suggesting a possible association between acetaminophen use during pregnancy and neurological conditions but emphasized that a causal relationship has not been established [3][6] - Medical professionals have also rejected the claims made regarding Tylenol and autism, supporting the company's position [3][6] Market Impact - Tylenol's stock had previously slumped to its lowest level of the year, but analysts suggest limited judicial risk following the announcement, although public opinion may impact Tylenol consumption [4][5] - Ken View's stock has decreased by approximately 16.5% over the past month, indicating market volatility surrounding the brand [5] Boeing Orders - Boeing's shares increased by 1.5% due to an $8 billion deal with Uzbekistan Airways for 14 Dreamliners, marking the airline's largest order ever [7][9] - This order is expected to support nearly 35,000 jobs in the US and is part of Uzbekistan's plan to expand its international routes [9] AutoZone Performance - AutoZone reported its fifth consecutive earnings miss, with EPS at $48.71, below the expected $50, and revenue just shy of $6.4 billion against a $6.25 billion expectation [10][11] - Despite the misses, AutoZone's stock is up over 20% year-to-date, indicating resilience in the face of tariff impacts and rising costs [11][12] - The company plans to aggressively open new stores in the upcoming year, although it did not provide a 2026 outlook [13]

Group 1 - The core point of the article is that AutoZone's stock price fell by 0.4% despite an increase in same-store sales for the fourth quarter, as both gross profit and earnings per share fell short of Wall Street expectations [1] Group 2 - AutoZone reported an increase in same-store sales for the fourth quarter [1] - The company's gross profit and earnings per share were below analysts' expectations [1] - The market reacted negatively, resulting in a 0.4% decline in AutoZone's stock price [1]

Group 1 - Kenvue's stock increased by 5.9% after refuting claims that acetaminophen may lead to autism [1] - Boeing's shares rose by 2.7% following an order from Uzbekistan Airways valued at over $8 billion [1] - Firefly Aerospace's stock fell by 10.9% as Q2 losses exceeded expectations and revenue was also below forecasts [1] Group 2 - AutoZone's stock declined by 2.3% due to Q4 performance falling short of expectations [1] - TSMC's stock increased by 3.9%, reaching a new high, with reports indicating a 20% price increase for the third-generation 3nm process compared to the previous generation [1]

Group 1: Earnings Performance - AutoZone reported quarterly earnings of $48.71 per share, missing the Zacks Consensus Estimate of $50.52 per share, representing an earnings surprise of -3.58% [1] - The company posted revenues of $6.24 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.35%, compared to year-ago revenues of $6.21 billion [2] - Over the last four quarters, AutoZone has not been able to surpass consensus EPS estimates [2] Group 2: Stock Performance and Outlook - AutoZone shares have increased approximately 28.7% since the beginning of the year, outperforming the S&P 500's gain of 13.8% [3] - The current consensus EPS estimate for the coming quarter is $36.84 on $4.55 billion in revenues, and for the current fiscal year, it is $167.37 on $20.18 billion in revenues [7] - The estimate revisions trend for AutoZone was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Automotive - Retail and Wholesale - Parts industry is currently in the bottom 26% of over 250 Zacks industries, which may impact AutoZone's stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Group 1 - Brown Advisory's "Global Leaders Strategy" aims to deliver strong long-term performance by investing in a focused portfolio of companies that solve customer problems and provide good returns for shareholders, outperforming its benchmark in Q2 2025 due to strong investment selection in Information Technology and Industrials [1] - AutoZone, Inc. (NYSE:AZO) is highlighted as a key stock, with a one-month return of -1.42% and a 52-week gain of 35.38%, closing at $4,121 per share on September 22, 2025, with a market capitalization of $68.939 billion [2] - AutoZone is experiencing strong sales growth across its DIY and DIFM customer segments, benefiting from industry recovery and driving market share growth through investments in inventory expansion and distribution centers [3] Group 2 - AutoZone, Inc. (NYSE:AZO) is not among the 30 most popular stocks among hedge funds, with 65 hedge fund portfolios holding the stock at the end of Q2 2025, a decrease from 67 in the previous quarter [4] - While AutoZone is recognized for its potential, certain AI stocks are suggested to offer greater upside potential and less downside risk [4] - Additional insights on AutoZone can be found in Macquarie Core Equity Fund's views and other hedge fund investor letters [5]

Core Viewpoint - AutoZone reported its fourth-quarter earnings, missing profit estimates despite a rise in same-store sales, leading to a decline in early trading [2] Financial Performance - Same-store sales increased by 4.5% during the quarter, surpassing the consensus estimate of 4.4% [2] - Domestic same-store sales rose by 4.8%, compared to a consensus of 4.3% [2]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) AutoZone's executive summary highlights sales growth, margin pressures from LIFO and investments, ongoing share repurchases, and increased inventory to support growth initiatives [Fourth Quarter & Annual Overview](index=1&type=section&id=Fourth%20Quarter%20%26%20Annual%20Overview) AutoZone reported sales growth for Q4 and full-year FY2025, with net sales reaching $6.2 billion and $18.9 billion respectively, despite declines in gross margin and operating profit due to LIFO and growth investments Key Financial Data for Q4 and Full-Year FY2025 | Metric | Fourth Quarter (16 weeks) | YoY Change | Full Year (52 weeks) | YoY Change | | :------------------- | :---------------- | :--------- | :---------------- | :--------- | | **Net Sales** | $6.2 billion | +0.6% (GAAP), +6.9% (Adjusted) | $18.9 billion | +2.4% | | **Gross Margin** | 51.5% | -98 bps | 52.6% | -50 bps | | **Operating Profit** | $1.2 billion | -7.8% | $3.6 billion | -4.7% | | **Net Income** | $837.0 million | -7.2% | $2.5 billion | -6.2% | | **Diluted EPS** | $48.71 | -5.6% | $144.87 | -3.1% | - Fourth quarter gross margin decreased by **98 basis points**, primarily due to a **128 basis point non-cash LIFO impact** ($80 million LIFO charge this quarter, none in the prior year period)[2](index=2&type=chunk) - Operating expenses as a percentage of sales increased from **31.6%** in the prior year period to **32.4%**, mainly due to investments supporting growth initiatives[2](index=2&type=chunk) [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) AutoZone consistently executed its share repurchase program in Q4 and full-year FY2025, returning value to shareholders Share Repurchase Activity | Period | Shares Repurchased (thousands) | Total Investment ($ millions) | Average Repurchase Price (per share) | | :--- | :-------------- | :------------------ | :------------------- | | Fourth Quarter | 117 | $446.7 | $3,821 | | Fiscal Year | 447 | $1.5 billion | $3,425 | | Remaining Authorization | - | $632.3 | - | - As of the fiscal year-end, the company had **$632.3 million** remaining under its existing share repurchase authorization[5](index=5&type=chunk) [Inventory Overview](index=1&type=section&id=Inventory%20Overview) Company inventory increased by 14.1% year-over-year, driven by growth initiatives, with net inventory per store improving to negative $131,000 - Company inventory increased by **14.1%** compared to the prior year, primarily driven by growth initiatives[6](index=6&type=chunk) - Net inventory per store (merchandise inventory less accounts payable) was **negative $131,000**, an improvement from negative $163,000 in the prior year and negative $142,000 last quarter[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) President and CEO Phil Daniele expressed satisfaction with strong Q4 sales growth, highlighting successful domestic and international DIY and commercial strategies, with plans for aggressive new store openings to expand market share and create shareholder value through disciplined profit and cash flow growth - The company is pleased with the results of its domestic and international DIY and commercial sales strategies, with domestic sales showing continuous improvement throughout the quarter[7](index=7&type=chunk) - International business continued its strong performance, with comparable store sales increasing by **7.2%** on a constant currency basis[7](index=7&type=chunk) - A total of **141 net new stores** were opened globally this quarter, with **304 net new stores** for the full year, and plans for aggressive store expansion in the new fiscal year[7](index=7&type=chunk) [Company Overview](index=2&type=section&id=Company%20Overview) AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas, offering a wide product range to DIY and commercial customers through physical stores and various online platforms, without providing automotive repair or installation services - AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas[9](index=9&type=chunk) - The company offers a wide range of products, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products, serving repair garages, dealers, and other commercial customers through its commercial sales program[9](index=9&type=chunk) - Products and information are sold through online channels including www.autozone.com, www.autozonepro.com, www.alldata.com, and www.duralastparts.com[9](index=9&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) AutoZone will host a conference call on Tuesday, September 23, 2025, at 10:00 AM EDT to discuss Q4 results, accessible via the company's website or by phone - The conference call to discuss fourth quarter results will be held on **Tuesday, September 23, 2025, at 10:00 AM EDT**[10](index=10&type=chunk) - Investors can access the webcast and supporting slides through the "Investor Relations" section of AutoZone's website or by dialing **(888) 506-0062 (passcode 347798)**[10](index=10&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures like adjusted sales, ROIC, and adjusted debt ratios to provide clearer year-over-year operational performance insights and manage its investment-grade credit rating [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company uses non-GAAP financial measures such as adjusted sales, Return on Invested Capital (ROIC), adjusted debt, and adjusted debt to EBITDAR ratio to present clearer year-over-year operating performance and assist management in maintaining an investment-grade credit rating - Non-GAAP measures include adjustments to exclude the impact of an extra week in the prior year's fourth quarter and fiscal year, Return on Invested Capital, Adjusted Debt, and Adjusted Debt to EBITDAR ratio[11](index=11&type=chunk) - The company believes these non-GAAP measures are useful to investors for a clearer understanding of year-over-year operating performance but should not be considered substitutes for GAAP measures[11](index=11&type=chunk) - Management maintains an investment-grade credit rating through capital structure management, deeming it critical for debt levels and share repurchase management[11](index=11&type=chunk) [Adjusted Debt / EBITDAR](index=6&type=section&id=Adjusted%20Debt%20%2F%20EBITDAR) The company reported an Adjusted Debt to EBITDAR ratio of 2.5x for both FY2025 and FY2024, demonstrating stability in its debt management Adjusted Debt / EBITDAR (in thousands of dollars) | Metric | FY2025 (52 weeks) | FY2024 (53 weeks) | | :------------------- | :---------------- | :---------------- | | EBITDAR | $4,811,103 | $4,892,402 | | Adjusted Debt | $11,977,901 | $12,109,980 | | **Adjusted Debt/EBITDAR** | **2.5** | **2.5** | - Adjusted debt includes debt, financing lease liabilities, and six times rent[19](index=19&type=chunk) [Adjusted Return on Invested Capital (ROIC)](index=6&type=section&id=Adjusted%20Return%20on%20Invested%20Capital%20(ROIC)) Adjusted Return on Invested Capital (ROIC) for FY2025 was 41.3%, a decrease from 49.7% in FY2024, reflecting increased invested capital and reduced adjusted after-tax return Adjusted Return on Invested Capital (ROIC) (in thousands of dollars) | Metric | FY2025 (52 weeks) | FY2024 (53 weeks) | | :------------------- | :---------------- | :---------------- | | Adjusted After-Tax Return | $3,246,514 | $3,380,045 | | Invested Capital | $7,869,085 | $6,798,295 | | **Adjusted ROIC** | **41.3%** | **49.7%** | - Invested capital calculation includes average debt, average shareholder deficit, six times rent, and average financing lease liabilities[20](index=20&type=chunk)[21](index=21&type=chunk) [Rent Expense Reconciliation](index=7&type=section&id=Rent%20Expense%20Reconciliation) The company provided a rent expense reconciliation under ASC 842, showing the difference between total lease cost and rent expense, primarily due to financing lease interest and amortization, and variable operating lease components Rent Expense Reconciliation (in thousands of dollars) | Metric | FY2025 (52 weeks) | FY2024 (53 weeks) | | :------------------------------------------------- | :---------------- | :---------------- | | Total Lease Cost under ASC 842 | $626,625 | $588,835 | | Less: Financing Lease Interest and Amortization | ($119,801) | ($103,670) | | Less: Variable Operating Lease Components related to Insurance and Common Area Maintenance | ($43,793) | ($37,472) | | **Rent Expense** | **$463,031** | **$447,693** | - The effective tax rates for FY2025 and FY2024 were **20.3%** and **20.2%**, respectively[22](index=22&type=chunk) [Forward-Looking Statements & Risk Factors](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Risk%20Factors) This press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995, based on management's assumptions and assessments, subject to various risks and uncertainties including product demand, energy prices, competition, credit market conditions, inflation, and supply chain disruptions, where actual results may differ materially - Forward-looking statements are based on management's assumptions and assessments of experience, historical trends, current conditions, and anticipated future developments[12](index=12&type=chunk) - Risks and uncertainties include, but are not limited to, product demand, energy prices, weather, competition, credit market conditions, cash flow, financing, stock repurchases, recession impacts, consumer debt levels, legal and regulatory changes, war, public health issues, inflation, exchange rates, employee recruitment and retention, construction delays, IT system failures, cyberattacks, credit rating downgrades, reputational damage, international market challenges, supplier costs, inventory availability, supply chain disruptions, tariffs, and geopolitical factors[12](index=12&type=chunk) - Forward-looking statements are not guarantees of future performance, and actual results may differ materially from expectations[12](index=12&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) This section presents AutoZone's condensed consolidated statements of operations, selected balance sheet information, and other key financial data for the reported periods [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) [Fourth Quarter](index=3&type=section&id=Fourth%20Quarter) For Q4 FY2025 (16 weeks), net sales were $6.243 billion, gross profit was $3.216 billion, net income was $837.0 million, and diluted EPS was $48.71; adjusted Q4 FY2024 (16 weeks) net sales were $5.840 billion, net income was $841.5 million, and diluted EPS was $48.11 Condensed Consolidated Statements of Operations for Q4 FY2025 (GAAP) (in thousands of dollars) | Metric | Q4 FY2025 (16 weeks) | Q4 FY2024 (17 weeks) | | :------------------- | :------------------------ | :------------------------ | | Net Sales | $6,242,726 | $6,205,380 | | Cost of Sales | $3,026,233 | $2,947,517 | | Gross Profit | $3,216,493 | $3,257,863 | | Operating, Selling and Administrative Expenses | $2,020,428 | $1,961,183 | | Operating Profit (EBIT) | $1,196,065 | $1,296,680 | | Net Interest Expense | $148,087 | $153,151 | | Income Before Taxes | $1,047,978 | $1,143,529 | | Income Tax Expense | $211,027 | $241,321 | | Net Income | $836,951 | $902,208 | | Diluted EPS | $48.71 | $51.58 | | Diluted Weighted Average Shares (thousands) | 17,181 | 17,491 | Condensed Consolidated Statements of Operations for Q4 FY2025 (Adjusted) (in thousands of dollars) | Metric | Q4 FY2025 (16 weeks) | Q4 FY2024 (16 weeks) | | :------------------- | :------------------------ | :------------------------ | | Net Sales | $6,242,726 | $5,839,501 | | Cost of Sales | $3,026,233 | $2,770,662 | | Gross Profit | $3,216,493 | $3,068,839 | | Operating, Selling and Administrative Expenses | $2,020,428 | $1,858,905 | | Operating Profit (EBIT) | $1,196,065 | $1,209,934 | | Net Interest Expense | $148,087 | $144,142 | | Income Before Taxes | $1,047,978 | $1,065,792 | | Income Tax Expense | $211,027 | $224,297 | | Net Income | $836,951 | $841,495 | | Diluted EPS | $48.71 | $48.11 | | Diluted Weighted Average Shares (thousands) | 17,181 | 17,491 | [Fiscal Year](index=4&type=section&id=Fiscal%20Year) For FY2025 (52 weeks), net sales were $18.939 billion, gross profit was $9.966 billion, net income was $2.498 billion, and diluted EPS was $144.87; adjusted FY2024 (52 weeks) net sales were $18.124 billion, net income was $2.602 billion, and diluted EPS was $146.14 Condensed Consolidated Statements of Operations for FY2025 (GAAP) (in thousands of dollars) | Metric | FY2025 (52 weeks) | FY2024 (53 weeks) | | :------------------- | :---------------- | :---------------- | | Net Sales | $18,938,717 | $18,490,268 | | Cost of Sales | $8,972,243 | $8,673,216 | | Gross Profit | $9,966,474 | $9,817,052 | | Operating, Selling and Administrative Expenses | $6,356,318 | $6,028,344 | | Operating Profit (EBIT) | $3,610,156 | $3,788,708 | | Net Interest Expense | $475,824 | $451,578 | | Income Before Taxes | $3,134,332 | $3,337,130 | | Income Tax Expense | $636,085 | $674,703 | | Net Income | $2,498,247 | $2,662,427 | | Diluted EPS | $144.87 | $149.55 | | Diluted Weighted Average Shares (thousands) | 17,245 | 17,803 | Condensed Consolidated Statements of Operations for FY2025 (Adjusted) (in thousands of dollars) | Metric | FY2025 (52 weeks) | FY2024 (52 weeks) | | :------------------- | :---------------- | :---------------- | | Net Sales | $18,938,717 | $18,124,389 | | Cost of Sales | $8,972,243 | $8,496,361 | | Gross Profit | $9,966,474 | $9,628,028 | | Operating, Selling and Administrative Expenses | $6,356,318 | $5,926,066 | | Operating Profit (EBIT) | $3,610,156 | $3,701,962 | | Net Interest Expense | $475,824 | $442,569 | | Income Before Taxes | $3,134,332 | $3,259,393 | | Income Tax Expense | $636,085 | $657,679 | | Net Income | $2,498,247 | $2,601,714 | | Diluted EPS | $144.87 | $146.14 | | Diluted Weighted Average Shares (thousands) | 17,245 | 17,803 | [Selected Balance Sheet Information](index=5&type=section&id=Selected%20Balance%20Sheet%20Information) As of August 30, 2025, total assets were $19.355 billion, an increase from the prior year, primarily driven by higher merchandise inventory and net property and equipment, with an improved shareholder deficit and continued negative working capital Selected Balance Sheet Information (in thousands of dollars) | Metric | August 30, 2025 | August 31, 2024 | | :------------------- | :---------------- | :---------------- | | Cash and Cash Equivalents | $271,803 | $298,172 | | Merchandise Inventory | $7,025,688 | $6,155,218 | | Total Current Assets | $8,341,379 | $7,306,759 | | Net Property and Equipment | $7,062,509 | $6,183,539 | | Total Assets | $19,355,324 | $17,176,538 | | Accounts Payable | $8,025,590 | $7,355,701 | | Total Current Liabilities | $9,519,397 | $8,714,243 | | Total Debt | $8,799,775 | $9,024,381 | | Shareholder Deficit | ($3,414,313) | ($4,749,614) | | Working Capital | ($1,178,018) | ($1,407,484) | - Merchandise inventory increased by **14.1%** year-over-year, reaching **$7.026 billion**[17](index=17&type=chunk) - Shareholder deficit improved from **negative $4.750 billion** in FY2024 to **negative $3.414 billion** in FY2025[18](index=18&type=chunk) [Other Selected Financial Information](index=7&type=section&id=Other%20Selected%20Financial%20Information) The company disclosed cumulative share repurchases, remaining repurchase authorization, depreciation and amortization, operating cash flow, and capital expenditures, with cumulative share repurchases exceeding $38.5 billion and operating cash flow reaching $3.155 billion in FY2025 Other Selected Financial Information (in thousands of dollars) | Metric | August 30, 2025 | August 31, 2024 | | :------------------- | :---------------- | :---------------- | | Cumulative Share Repurchases ($) (since FY1998) | $38,517,689 | $36,986,031 | | Remaining Share Repurchase Authorization ($) | $632,311 | $2,163,969 | | Shares Outstanding at Quarter End (thousands) | 16,665 | 16,926 | | **Period Metrics** | **FY2025 (52 weeks)** | **FY2024 (53 weeks)** | | Depreciation and Amortization | $613,199 | $549,755 | | Cash Flow from Operating Activities | $3,155,401 | $3,004,116 | | Capital Expenditures | $1,365,321 | $1,072,696 | - Cash flow from operating activities for FY2025 was **$3.155 billion**, up from **$3.004 billion** in FY2024[23](index=23&type=chunk) - Capital expenditures for FY2025 increased to **$1.365 billion** from **$1.073 billion** in FY2024[23](index=23&type=chunk) [Operational Highlights](index=8&type=section&id=Operational%20Highlights) Operational highlights include continued store expansion, detailed sales and store statistics, same-store sales performance, and inventory management metrics [Store Expansion](index=8&type=section&id=Store%20Expansion) AutoZone continued to expand its store network in Q4 and full-year FY2025, opening 141 net new stores globally in Q4 and 304 for the full year, bringing the total store count to 7,657 Store Count and Regional Distribution | Region | August 30, 2025 (End of Period Store Count) | August 31, 2024 (End of Period Store Count) | | :--- | :-------------------------- | :-------------------------- | | United States | 6,627 | 6,432 | | Mexico | 883 | 794 | | Brazil | 147 | 127 | | **Total** | **7,657** | **7,353** | | **Net New Stores (Q4)** | **141** | **117** | | **Net New Stores (FY)** | **304** | **213** | - In Q4 FY2025, **91 new stores** opened in the US (1 closed), **45** in Mexico, and **6** in Brazil, totaling **141 net new stores**[8](index=8&type=chunk) [Store & Sales Statistics](index=8&type=section&id=Store%20%26%20Sales%20Statistics) In FY2025, AutoZone saw growth in average sales per store and per square foot, with domestic commercial sales continuing to increase and average sales per program per week significantly improving Store & Sales Statistics | Metric | Q4 FY2025 (16 weeks) | Q4 FY2024 (17 weeks) | FY2025 (52 weeks) | FY2024 (53 weeks) | | :------------------- | :------------------------ | :------------------------ | :---------------- | :---------------- | | Average Sales Per Store (thousands of dollars) | $823 | $835 | $2,523 | $2,505 | | Average Sales Per Square Foot ($) | $122 | $124 | $374 | $373 | | Total Domestic Commercial Sales (thousands of dollars) | $1,761,960 | $1,662,596 | $5,212,294 | $4,882,764 | | Domestic Commercial Sales YoY Growth | 6.0% | 10.9% | 6.7% | 6.2% | | Average Sales Per Program Per Week ($) | $18.2 | $16.7 | $16.7 | $15.9 | | Average Sales Per Program Per Week YoY Growth | 9.0% | 0.0% | 5.0% | -0.6% | - In FY2024, an extra week of sales contributed approximately **$359.1 million** to total sales, including **$95.7 million** in domestic commercial sales, benefiting average sales per store by **$49,000** and per square foot by **$7,000**[25](index=25&type=chunk) [Same Store Sales](index=9&type=section&id=Same%20Store%20Sales) In Q4 FY2025, total same store sales grew by 4.5%, or 5.1% on a constant currency basis, with domestic same store sales increasing by 4.8% and international same store sales by 7.2% at constant currency Same Store Sales Growth Rate | Category | Q4 FY2025 (16 weeks) | Q4 FY2024 (16 weeks) | FY2025 (52 weeks) | FY2024 (52 weeks) | | :------------------- | :------------------------ | :------------------------ | :---------------- | :---------------- | | Domestic | 4.8% | 0.2% | 3.2% | 0.4% | | International | 2.1% | 4.9% | -3.2% | 16.1% | | **Company Total** | **4.5%** | **0.7%** | **2.4%** | **2.1%** | | International (Constant Currency) | 7.2% | 9.9% | 9.3% | 10.2% | | Company Total (Constant Currency) | 5.1% | 1.3% | 3.9% | 1.4% | - Same store sales are calculated based on sales from stores open for at least one year, with constant currency same store sales excluding the impact of foreign exchange fluctuations[26](index=26&type=chunk) [Inventory Statistics](index=9&type=section&id=Inventory%20Statistics) As of August 30, 2025, total company inventory was $7.026 billion, with inventory per store at $918,000, an accounts payable to inventory ratio of 114.2%, net inventory (less accounts payable) of negative $999.9 million, and net inventory per store of negative $131,000 Inventory Statistics (in thousands of dollars) | Metric | August 30, 2025 | August 31, 2024 | | :------------------- | :---------------- | :---------------- | | Accounts Payable/Inventory | 114.2% | 119.5% | | Inventory | $7,025,688 | $6,155,218 | | Inventory Per Store | $918 | $837 | | Net Inventory (less Accounts Payable) | ($999,902) | ($1,200,483) | | Net Inventory Per Store | ($131) | ($163) | | **Inventory Turnover** | **1.4 x** | **1.5 x** | - Inventory turnover decreased from **1.5x** in FY2024 to **1.4x** in FY2025[27](index=27&type=chunk)

Core Insights - AutoZone, Inc. reported net sales of $6.2 billion for Q4 FY2025, a 0.6% increase from Q4 FY2024, with adjusted sales up 6.9% when excluding the additional week from the previous year [1][4] - The company opened 141 net new stores globally in the quarter, contributing to a total of 304 net new stores for the fiscal year [7][8] Financial Performance - Gross profit margin for Q4 FY2025 was 51.5%, down 98 basis points from the previous year, primarily due to a non-cash LIFO charge of $80 million [2][3] - Operating profit decreased by 7.8% to $1.2 billion, while net income fell to $837 million, a decrease of 7.2% from the prior year [3][4] - For the fiscal year, net sales reached $18.9 billion, a 2.4% increase, with net income decreasing by 6.2% to $2.5 billion [4][15] Store Expansion and Sales Growth - Domestic same-store sales increased by 4.8% for the quarter, while international same-store sales grew by 2.1% [1][25] - The company continues to focus on expanding its market share, with plans to aggressively open new stores in the upcoming fiscal year [7][8] Share Repurchase Program - During Q4 FY2025, AutoZone repurchased 117,000 shares at an average price of $3,821, totaling $446.7 million [5] - For the fiscal year, the total share repurchase amounted to 447,000 shares at an average price of $3,425, totaling $1.5 billion [5] Inventory Management - Inventory increased by 14.1% year-over-year, driven by growth initiatives, with net inventory per store improving to negative $131, compared to negative $163 the previous year [6][26] - The company reported an accounts payable to inventory ratio of 114.2%, indicating effective inventory management [26]