AutoZone, Inc. AZO · Stock Open AutoZone, Inc. in new tab

AutoZone's shares fell 9% following the earnings release, reflecting investor disappointment with a notable deceleration in key sales metrics during the back half of the quarter and ongoing margin pressure from inventory accounting charges.

• Total company sales grew 8.4%, the largest reported since Q2 FY23, but sequential weakening was seen in the last four weeks, with comps slowing notably to 1.3% in the final two weeks.
• Domestic same-store sales advanced 4.1%, driven by 2.2% DIY growth and 10.4% commercial growth, though DIY traffic declined 3.6%, mirroring last quarter’s softness.
• Margins were negatively impacted by a $20 million non-cash LIFO inventory charge, a reversal from a $16 million credit last year’s Q3, tempering EPS growth to 7.7%.
• Weather-related softness affected key categories late in the quarter, particularly in heat-related product sales, contributing to deceleration concerns among investors.
• The company opened 82 stores globally this quarter, exceeding last year’s pace and maintaining confidence in new store productivity amid challenging topline dynamics.