:max_bytes(150000):strip_icc()/GettyImages-2153327365-03e2a8ed43824287b943432f6fdea2ee.jpg "AutoZone Posts Weaker-Than-Expected Q4 Profit")
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Key Takeaways
- AutoZone missed earnings estimates as it spent more on expansion.
- The auto parts retailer increased its store count by 141 in the quarter, and also expanded its inventory.
- CEO Phil Daniele said AutoZone will “aggressively open stores in the new year.”
AutoZone (AZO) posted weaker-than-expected quarterly profit as its spending increased.
The auto parts retailer reported fourth-quarter fiscal 2025 net income that dropped 7.2% to $837.0 million, with diluted earnings per share of $48.71. Analysts surveyed by Visible Alpha were looking for $867.5 million and $50.89, respectively. Revenue rose 0.6% to $6.24 billion, basically in line with forecasts. Same-store sales grew 4.5%, slightly higher than estimates.
Operating, selling, general, and administrative expenses were up 3.0% to $2.02 billion as AutoZone added 141 stores and expanded its inventory 14.1%.
CEO Phil Daniele said that trend will continue, as AutoZone expects to “aggressively open stores in the new year.” He added that by investing in the business, the company anticipates ”that our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value.”
AutoZone shares were flat in morning trading. Prior to today’s session, they were up 29% year-to-date.
