AutoZone Q1 Earnings & Revenues Fall Short of Expectations

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]