AutoZone, Inc. Earnings Recaps
Q3 2026
May 27, 2026
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.
Key takeaways
- 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.
Q2 2026
Mar 3, 2026
AutoZone reported a solid 8.1% sales growth in Q2 2026; however, EPS declined by 2.3% due to a significant non-cash LIFO charge impacting margins.
Key takeaways
- Gross margin and operating profit pressures stemmed from a $59 million LIFO charge, with adjusted EPS reflecting a 7.1% increase year-over-year.
- Domestic commercial sales rose 9.8%, driven by strong demand despite negative impacts from severe winter weather in late January and early February.
- The company opened 64 new stores this quarter, surpassing last year's pace, and is on track to open between 350 to 360 stores in FY 2026.
- International same store sales improved by 2.5% in constant currency terms, bolstered by favorable exchange rates, leading to a 17.1% unadjusted comp.
- Market share gains are anticipated as the company leverages summer season trends and historical weather patterns to drive demand.