AutoZone 2nd Quarter Total Company Same Store Sales Increase 3.3%; Domestic Same Store Sales Increase 3.4%; EPS of $27.63

Core Insights - AutoZone, Inc. reported net sales of $4.3 billion for Q2 2026, marking an 8.1% increase from Q2 2025, with same-store sales growth of 5.2% overall [1][27] Financial Performance - Gross profit margin decreased to 52.5%, down 137 basis points year-over-year, primarily due to a non-cash LIFO charge [2] - Operating profit fell by 1.2% to $698.5 million, while net income decreased to $468.9 million from $487.9 million in the prior year [3] - Diluted earnings per share were $27.63, down from $28.29 year-over-year [3] Share Repurchase and Capital Allocation - The company repurchased 85,000 shares at an average price of $3,666, totaling $310.8 million, with $1.4 billion remaining under its share repurchase authorization [4] Inventory and Supply Chain - Inventory increased by 13.1% year-over-year, driven by growth initiatives and inflation, with net inventory per store improving to negative $105, compared to negative $161 last year [5][28] Store Expansion and Market Presence - AutoZone opened 64 net new stores globally in the quarter, including 43 in the U.S., 18 in Mexico, and 3 in Brazil, bringing the total store count to 7,774 [6][7] - The company continues to gain market share in Mexico and Brazil, despite international sales being slightly below expectations [6] Sales Performance - Domestic same-store sales grew by 3.4%, while international same-store sales increased by 17.1% [1][27] - Total company same-store sales growth was 5.2%, with a constant currency growth of 3.3% [1][27] Operational Highlights - Operating expenses as a percentage of sales were 36.1%, slightly up from 36.0% the previous year, reflecting investments in growth initiatives [2] - The company reported cash flow from operations of $342.5 million for the quarter [23]