AutoZone Reports 2.4% Net Sales Increase to $4.0 Billion in Q2 Fiscal 2025

AutoZone, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a net sales increase of 2.4% to $4.0 billion compared to $3.9 billion in the same period last year. The company's gross profit for the quarter was $2.1 billion, maintaining a gross margin of 53.9%. However, operating profit decreased by 4.9% to $706.8 million, and net income fell by 5.3% to $487.9 million, resulting in diluted earnings per share of $28.29, down from $28.89 a year earlier. The decline in profitability was attributed to unfavorable foreign currency exchange rates, which negatively impacted net sales by $91.1 million and operating profit by $29.6 million.

In terms of operational metrics, AutoZone's domestic commercial sales rose by 7.3% to $1.1 billion, while same-store sales increased by 2.9% on a constant currency basis. The company opened 79 new stores during the first half of the fiscal year, contributing to a total of 7,432 stores across the U.S., Mexico, and Brazil. The company continues to focus on its growth initiatives, which include expanding its store footprint and enhancing its distribution capabilities.

AutoZone's total current assets increased to $7.8 billion as of February 15, 2025, up from $7.3 billion at the end of the previous fiscal year. Merchandise inventories also rose to $6.6 billion, reflecting the company's strategy to maintain adequate stock levels amid fluctuating demand. The company's total liabilities increased to $18.1 billion, with long-term debt remaining relatively stable at $9.1 billion. The company reported a stockholders' deficit of $4.5 billion, which has improved from $4.7 billion in the previous period.

Looking ahead, AutoZone anticipates continued investment in its business, particularly in new store openings and distribution center expansions. The company expects to leverage its cash flows and available credit to support these initiatives while maintaining a focus on shareholder returns through stock repurchases. As of February 15, 2025, AutoZone had $300.9 million in cash and cash equivalents and $2.2 billion in undrawn capacity on its revolving credit agreement, indicating a strong liquidity position to fund its growth strategies. The company remains cautious about macroeconomic factors that could impact consumer demand and operational performance in the future.