Financial Performance - AutoZone Inc. reported earnings of $32.52 per share for Q1 fiscal 2025, missing the Zacks Consensus Estimate of $33.54 and slightly down from $32.55 per share in the same quarter of fiscal 2024 [1] - Net sales increased by 2.1% year over year to $4.28 billion, but also fell short of the Zacks Consensus Estimate of $4.29 billion [1] - Domestic commercial sales reached $1.13 billion, up from $1.09 billion in the prior year, while domestic same-store sales grew by 0.3% [2] - Gross profit rose to $2.27 billion from $2.21 billion in the previous year, but operating profit decreased by 0.8% year over year to $841 million [2] Store Operations - During the quarter, AutoZone opened 23 new stores in the U.S., six in Mexico, and five in Brazil, bringing the total store count to 7,387 as of Nov. 23, 2024 [3] - The inventory increased by 8.7% year over year, with inventory per store at $849,000 compared to $806,000 a year ago [3] Financial Position and Share Repurchases - As of Nov. 23, 2024, AutoZone had cash and cash equivalents of $304 million, up from $298.2 million as of Aug. 31, 2024, while total debt slightly decreased to $9.01 billion [4] - The company repurchased 160,000 shares for $505.2 million at an average price of $3,156 per share, with $1.7 billion remaining under its current share repurchase authorization [4] Market Position - AutoZone currently holds a Zacks Rank of 4 (Sell), while competitors like Dorman Products, Tesla, and Blue Bird Corporation have a Zacks Rank of 1 (Strong Buy) [5]

Core Viewpoint - AutoZone is positioned as a high-caliber buy-and-hold stock despite facing headwinds in 2024, with strong growth, margin maintenance, robust cash flow, and a history of increasing stock value [1] Financial Performance - AutoZone reported FQ1 net sales of $4.28 billion, reflecting a 2.1% increase year-over-year, although it missed consensus estimates by 70 basis points [4] - The company executed share repurchases amounting to $505 million in FQ1, reducing the total share count by 4.7% year-over-year, with an additional $1.7 billion available for buybacks [2][3] - The domestic commercial business showed strength, while the DIY auto-repair market is showing signs of improvement, with international sales growing by 13.7% on an FX-neutral basis [6] Margin and Cash Flow - Operating profit saw a minimal decline of 0.9% due to increased expenses, but cash flow remains sufficient to support the balance sheet and capital return outlook [7] - The balance sheet shows increased cash, inventory, and total assets, although there is a shareholder deficit that is being offset by share repurchases [3] Market Sentiment and Analyst Ratings - The stock is currently rated as a "Moderate Buy" with a price target of $3,339.25, reflecting a slight downside of 0.2% [5] - Analysts from Evercore ISI have raised their price target to $3,400, indicating confidence in the stock's valuation and potential for further price increases [9] Stock Price Action - AutoZone's stock price is in a bullish trend, with recent price action suggesting a continuation of this upward trajectory, potentially gaining another $2,450 [11]

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Financial Data and Key Metrics - Total sales grew by 2.1% to $4.3 billion, while earnings per share (EPS) decreased by 0.1% [10][29] - Domestic same-store sales grew by 0.3%, and international same-store sales grew by 13.7% on a constant currency basis [11][29] - EBIT was down by 0.9%, and EPS was down by 0.1% [29] - Foreign exchange rates weakened by 13% in Mexico, resulting in a $58 million headwind to sales, a $17 million headwind to EBIT, and a $0.68 per share drag on EPS [30] Business Line Performance - Domestic DIY comp sales were down 0.4%, with discretionary merchandise categories underperforming, representing 17% of the mix [13] - Domestic commercial sales grew by 3.2%, with a 9% increase on a two-year stack basis [11] - International same-store sales grew by 13.7% on a constant currency basis, but faced a 1,300 basis points currency headwind, resulting in a 1% unadjusted comp [11] Market Performance - Northeast, Mid-Atlantic, and Rust Belt markets underperformed, with a 1.8% decline compared to a 0.1% decline in other domestic markets [17] - International markets, particularly Mexico and Brazil, showed strong growth, with 11 new stores opened in the quarter, bringing the total to 932 international stores [24] Company Strategy and Industry Competition - The company is investing over $1 billion in CapEx to drive strategic growth priorities, including accelerated store growth, inventory placement, and distribution center efficiency [26] - The company plans to open around 100 international stores in FY 2025 and aims to have 300 mega-hubs at full buildout [25][37] - The company is focused on improving customer service, product assortment, and supply chain efficiency to position itself for future upswings in consumer demand [12] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about improved execution and customer service initiatives, expecting the environment to improve with winter weather and the election uncertainty behind [9] - The company expects DIY and commercial sales trends to modestly improve in Q2, with easier comparisons and momentum from sales growth initiatives [23] - Management is bullish on international growth, expecting it to be a meaningful contributor to future sales and operating profit growth [42] Other Important Information - The company repurchased $505 million of stock in the quarter and has $1.7 billion remaining under its share buyback authorization [55] - Free cash flow for the quarter was $565 million, down from $595 million in the previous year, driven by lower net income and higher CapEx [52] - The company's leverage ratio finished at 2.5 times EBITDAR, with inventory per store up 5.4% compared to the previous year [53] Q&A Session Summary Question: Impact of a competitor exiting the West Coast market - The company expects short-term headwinds from discounted prices but sees long-term opportunities for market share gains [76][77] Question: Cadence of Q1 and Q2 performance - The first four weeks of Q1 were the weakest for commercial sales due to hurricanes, but performance improved in the latter part of the quarter [79][80] Question: Operating income growth in a sluggish macro environment - The company expects comps to improve and gross margins to remain strong, with disciplined SG&A management [85][86] Question: Pricing and CPI impact - The company expects normal inflation to return, which should positively impact like-for-like SKU inflation [93] Question: Share repurchases and capital allocation - The company plans to maintain a leverage target of 2.5 times EBITDAR and continue returning cash to shareholders through buybacks [96][97] Question: Impact of calendar shifts on same-store sales - The extra week in the previous year negatively impacted comps by about 1 point in Q1, with a potential positive impact expected in later quarters [102][103] Question: Commercial sales performance in stores serviced by hubs - Hubs and mega-hubs significantly outperform satellite stores, lifting both DIY and commercial sales in their markets [105][106] Question: Gross margin dynamics - Gross margin improved by 21 basis points ex-LIFO, driven by merchandising margin improvements, with potential headwinds from new DCs coming online [110][113] Question: Mega-hub strategy and store growth targets - The company has increased its mega-hub target to 300, driven by strong performance and minimal cannibalization in dense markets [119][123] - The company is on track to open 300 domestic and 200 international stores by the end of the decade [125][127] Question: DIFM business performance - Commercial sales decelerated slightly in Q1, with weaker performance in new and used car-related segments, but improvement in other areas [132][135] Question: SG&A growth and wage inflation - SG&A growth has moderated, with wage inflation cooling, allowing the company to invest in growth initiatives while managing expenses [137][138] Question: DIY and commercial performance expectations - The company expects improvement in DIY and commercial performance due to easier comps, growth initiatives, and potential share gains [143][145] Question: Competitive environment and pricing strategies - The company remains confident in its pricing strategies, despite increased competition from mass retailers in certain categories [149][150] Question: Mega-hub density and returns - The company has found that multiple mega-hubs in large metro markets can coexist without significant cannibalization, driving better performance [154][155] Question: International market performance - International markets, particularly Mexico, are driving strong growth, with the company exporting domestic strategies to these regions [180][181] Question: Inflation and deflation trends - The company has seen slight deflation in the commercial business, driven by mix, but expects a return to more normal historical trends over time [164][165] Question: COGS and sourcing strategy - The company sources products globally, with a diversified supply chain to mitigate risks from inflation and tariffs [170][171]

EXHIBIT 99.1 AutoZone 1st Quarter Total Company Same Store Sales Increase 1.8%; Domestic Same Store Sales Increase 0.3%; 1st Quarter EPS of $32.52 MEMPHIS, Tenn., Dec. 10, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.3 billion for its first quarter (12 weeks) ended November 23, 2024, an increase of 2.1% from the first quarter of fiscal 2024 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows: | --- | -- ...

MEMPHIS, Tenn., Dec. 03, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE:AZO) announced it will hold its Annual Meeting of Stockholders on Wednesday, December 18, 2024, at the J.R. Hyde III Store Support Center in Memphis, Tennessee. The meeting will begin at 9:00 a.m. (ET). Additionally, this event will be webcast and can be accessed at AutoZone's website at www.autozone.com and by clicking on Investor Relations. About AutoZone: As of August 31, 2024, the Company had 6,432 stores in the U.S., 794 in Mexico a ...

In the latest trading session, AutoZone (AZO) closed at $3,179.52, marking a +0.31% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.25%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.97%.Prior to today's trading, shares of the auto parts retailer had gained 6.32% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.74% and outpaced the S&P 500's gain of 3.51% in that time.The investment community will be paying c ...

The most recent trading session ended with AutoZone (AZO) standing at $3,109.56, reflecting a +0.33% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.27%.The auto parts retailer's shares have seen a decrease of 1.01% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.51% and the S&P 500's gain of 2.1%.Investors will be eagerly watching for the performance ...

MEMPHIS, Tenn., Nov. 19, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), the leading retailer and distributor of automotive replacement parts and accessories in the Americas, will release results for its first quarter ended Saturday, November 23, 2024, before market open on Tuesday, December 10, 2024. Additionally, the Company will host a one-hour conference call on Tuesday, December 10, 2024, beginning at 10:00 a.m. (ET), to discuss the results of the quarter. This call is being webcast and can be acc ...

The near-term outlook for the Zacks Automotive - Retail and Wholesale - Parts industry remains subdued. U.S. new car sales declined for the second straight quarter in the third quarter of 2024, with the full-year vehicle sales outlook being trimmed. Additionally, the industry is navigating challenges, including the shift away from DIY repairs due to the complexity of modern vehicles and the need for significant capital expenditures to keep pace with technological advancements and digitization. The only brig ...