On Tuesday, AutoZone Inc. announced higher fourth-quarter earnings that beat its previous financial data but missed analysts’ expectations.
The company’s stock price declined by -0.16% to $3,043.97 apiece on September 24’s Asian afternoon session. Likewise, it is anticipated to drop by -0.28% to $3,035.49 per share in after-hours trading.
Based on the report, its earnings per share (EPS) rose to $48.11 but failed to meet the $53.61 experts’ estimates. However, it managed to surpass $36.69 in the past quarter, displaying an earnings surprise of -9.75%
Moreover, the retail firm’s revenue increased to $6.20 billion, but it fell short of the foreseen $6.23 billion. Still, it exceeded Q3’s $4.24 billion.
For its same-store sales, AutoZone jumped by 0.70% on a 16-week basis, while its domestic same-store sales spiked by 0.20%.
In addition, its gross profit margin dropped by 21 basis points to 52.50%, mainly driven by a 53-basis-point non-cash LIFO impact. Operating costs as a percentage of sales ramped up to 31.60% from 31.20% in the past year.
AutoZone reported sales of $18.50 billion for the full fiscal year 2024, 5.90% higher year over year, and its EPS increased by 13.00% to $149.55. Meanwhile, the entity noted its continuous challenges regarding deferrals in discretionary merchandise categories.
US Discretionary Spending Affects AutoZone
AutoZone posted lower-than-expected financial data, impacted by the decline in US consumers’ non-essential spending. However, the auto parts retailer’s store expansion supported its earnings.
According to its CEO, Phil Daniele, their business is persistently facing deferrals across their discretionary merchandise sectors. Adding to its weaker profits, its operating and selling, general, and administration costs surged by 10.40% to $1.96 billion.
Furthermore, AutoZone added 68 new stores in the US, 31 in Mexico, and 18 in Brazil, equating to 117 additional stores. Also, it repurchased 244,000 shares at an average price of $2,915.00, for a total investment of $710.60 million.
