AutoZone Reports 5.4% Net Sales Increase to $4.5 Billion for Twelve Weeks Ended May 10, 2025

AutoZone, Inc. reported its financial results for the twelve and thirty-six weeks ended May 10, 2025, revealing a net sales increase of 5.4% to $4.5 billion compared to $4.2 billion in the same period last year. For the thirty-six weeks, net sales rose by 3.3% to $12.7 billion from $12.3 billion. The company's gross profit for the quarter was $2.4 billion, representing a gross margin of 52.7%, down from 53.5% in the prior year, primarily due to higher inventory shrink and increased supply chain costs. Net income for the quarter decreased by 6.6% to $608.4 million, with diluted earnings per share falling to $35.36 from $36.69.

In terms of operational metrics, AutoZone's domestic commercial sales increased by 10.7% to $1.3 billion, while same-store sales for domestic locations rose by 5.0%. However, international same-store sales experienced a decline of 9.2%, influenced by unfavorable foreign currency exchange rates, which negatively impacted net sales by approximately $89.3 million. The company opened 163 new stores during the thirty-six weeks, contributing to a total of 7,516 stores across the U.S., Mexico, and Brazil.

AutoZone's total current assets increased to $7.99 billion as of May 10, 2025, up from $7.31 billion at the end of the previous fiscal year. This growth was driven by higher accounts receivable and merchandise inventories, which rose to $6.82 billion from $6.16 billion. On the liabilities side, total current liabilities also increased to $9.47 billion, up from $8.71 billion, largely due to higher accounts payable. The company's long-term debt decreased slightly to $8.85 billion from $9.02 billion, reflecting ongoing debt management strategies.

The company continues to focus on strategic growth initiatives, including investments in new store openings and expansion projects. AutoZone's management anticipates that these investments will support long-term growth, despite the challenges posed by macroeconomic factors such as inflation and supply chain disruptions. The company maintains a strong liquidity position, with $268.6 million in cash and cash equivalents and $2.2 billion in undrawn capacity on its revolving credit agreement, which is expected to provide sufficient resources for operational needs and strategic investments moving forward.