Global Finance News
27 May 2025, 17:55
AutoZone Reports Strong Q3 Sales Growth Despite Margin Pressure; EPS at $35.36
AutoZone announced its third-quarter fiscal 2025 results on May 27, reporting a 5.4% increase in total company same store sales and a 5.0% rise in domestic same store sales. Net sales for the quarter reached $4.5 billion, with diluted earnings per share of $35.36, down 3.6% year-over-year. Net income declined 6.6% to $608.4 million, attributed to margin compression and higher operating expenses.
Gross margin fell to 52.7%, impacted by increased inventory shrink, higher commercial sales mix, distribution center startup costs, and a non-cash LIFO adjustment. Operating expenses rose to 33.3% of sales due to self-insurance costs and growth investments. Operating profit dropped 3.8% to $866.2 million.
Internationally, same store sales declined 9.2% but rose 8.1% on a constant currency basis. The company opened 84 new stores globally, bringing the total to 7,516 locations. Domestic commercial sales rose 10.7%, contributing to overall strong performance.
AutoZone repurchased $250 million in shares during the quarter and ended with $1.1 billion remaining under its buyback authorization. CEO Phil Daniele reaffirmed confidence in the company’s strategic investments and readiness for the summer selling season, emphasizing long-term shareholder value.
AutoZone announced its third-quarter fiscal 2025 results on May 27, reporting a 5.4% increase in total company same store sales and a 5.0% rise in domestic same store sales. Net sales for the quarter reached $4.5 billion, with diluted earnings per share of $35.36, down 3.6% year-over-year. Net income declined 6.6% to $608.4 million, attributed to margin compression and higher operating expenses.
Gross margin fell to 52.7%, impacted by increased inventory shrink, higher commercial sales mix, distribution center startup costs, and a non-cash LIFO adjustment. Operating expenses rose to 33.3% of sales due to self-insurance costs and growth investments. Operating profit dropped 3.8% to $866.2 million.
Internationally, same store sales declined 9.2% but rose 8.1% on a constant currency basis. The company opened 84 new stores globally, bringing the total to 7,516 locations. Domestic commercial sales rose 10.7%, contributing to overall strong performance.
AutoZone repurchased $250 million in shares during the quarter and ended with $1.1 billion remaining under its buyback authorization. CEO Phil Daniele reaffirmed confidence in the company’s strategic investments and readiness for the summer selling season, emphasizing long-term shareholder value.
