Benzinga·2025-09-23 14:02Core Viewpoint - AutoZone, Inc. reported fourth-quarter earnings and sales that fell short of Wall Street expectations, leading to an initial dip in share price, although the stock later recovered slightly. Financial Performance - The company reported fourth-quarter earnings per share of $48.71, missing the analyst consensus estimate of $50.91 [1] - Quarterly sales were $6.242 billion, reflecting a year-over-year increase of 0.6%, but missed the expected $6.245 billion [1] - Adjusted sales, excluding an additional week from the previous year, increased by 6.9% [2] - Total same-store sales rose by 5.1%, with domestic same-store sales increasing by 4.8% [2] - Gross margin was 51.5%, down 98 basis points year-over-year, impacted by a non-cash LIFO headwind of 128 basis points from an $80 million charge [2] Profitability Metrics - Operating profit decreased by 7.8% to $1.2 billion [3] - Net income for the quarter was $837.0 million, compared to $902.2 million in the prior year [3] Shareholder Actions - AutoZone repurchased 117,000 shares in the fourth quarter at an average price of $3,821, totaling a buyback outlay of $446.7 million [3] Inventory and Expansion - The company's inventory increased by 14.1% year-over-year, primarily due to growth initiatives [3] - In the quarter ended August 30, 2025, AutoZone opened 91 U.S. stores, 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] - AutoZone plans to accelerate store openings in the coming year to gain market share [4][5] Cash Position - The company exited the quarter with cash and equivalents amounting to $271.803 million [5]