AutoZone, Inc. reported fourth-quarter earnings that fell short of analyst expectations, as a significant LIFO charge impacted profitability despite solid same-store sales growth. Shares of the automotive parts retailer declined by over 4% following the announcement.
The company posted adjusted earnings per share of $48.71 for the 16-week period ended August 30, 2025, missing the analyst consensus of $50.93. Revenue came in at $6.24 billion, in line with analyst expectations. When excluding the impact of the additional week in last year’s quarter, sales increased 6.9% YoY. Total company same-store sales rose 5.1% on a constant currency basis, with domestic same-store sales increasing 4.8%.
Gross profit margin decreased 98 basis points to 51.5% compared to the prior year, primarily due to a $80 million non-cash LIFO charge in the current quarter versus none in the prior year. Operating expenses as a percentage of sales increased to 32.4% from 31.6% last year, which the company attributed to investments supporting growth initiatives.
"I would like to thank our entire organization for delivering another strong quarter of sales growth," said Phil Daniele, President and Chief Executive Officer. "We continue to be pleased with the results of our strategies to grow both our domestic and international DIY and Commercial sales."
The company opened 141 net new stores globally during the quarter, bringing its total store count to 7,657. AutoZone’s inventory increased 14.1% over the same period last year, driven by growth initiatives.
For the full fiscal year 2025, AutoZone reported net sales of $18.9 billion, an increase of 2.4% from the prior year. Annual earnings per share decreased 3.1% to $144.87 from $149.55 in the previous year.
The company continued its share repurchase program, buying back 117,000 shares during the fourth quarter at an average price of $3,821 per share, for a total investment of $446.7 million.
Source :
https://www.investing.com/news/earnings/autozone-q4-earnings-miss-estimates-as-lifo-charge-weighs-on-profits-4250936
