AutoZone Reports 8.1% Net Sales Increase to $4.3 Billion, Net Income Declines by 3.9%

AutoZone, Inc. reported its financial results for the twelve and twenty-four weeks ended February 14, 2026, revealing a net sales increase of 8.1% to $4.3 billion compared to $4.0 billion in the same period last year. For the twenty-four weeks, net sales reached $8.9 billion, an 8.2% increase from $8.2 billion. The growth was attributed to a 3.3% increase in same-store sales on a constant currency basis and contributions from new store openings, which added $114.4 million in the latest quarter. However, net income for the quarter decreased by 3.9% to $468.9 million, and diluted earnings per share fell by 2.3% to $27.63, primarily due to a non-cash LIFO charge impacting gross profit margins.

The company’s gross profit for the twelve weeks was $2.2 billion, representing 52.5% of sales, down from 53.9% in the prior year, while operating expenses rose to $1.5 billion, or 36.1% of sales. The increase in operating expenses was linked to investments aimed at supporting growth initiatives. Interest expenses remained relatively stable at $107.2 million, and the effective income tax rate increased to 20.7% from 18.4% due to a reduced benefit from stock options exercised.

In terms of operational developments, AutoZone opened 117 new stores during the twenty-four weeks, compared to 79 in the same period last year, expanding its footprint to 6,709 stores in the U.S., 913 in Mexico, and 152 in Brazil. The company continues to focus on its commercial sales program, which accounted for $1.2 billion in sales, a 9.8% increase year-over-year. The company’s inventory management strategy, utilizing a LIFO method, resulted in a significant increase in its LIFO credit reserve, reflecting the impact of inflation on merchandise purchases.

Looking ahead, AutoZone anticipates continued investment in growth initiatives, including new store openings and expansion projects. The company maintains a strong liquidity position with $285.5 million in cash and $2.2 billion in undrawn capacity under its revolving credit agreement. However, it acknowledges potential risks from macroeconomic factors such as inflation, interest rates, and supply chain disruptions that could affect future performance. The company remains committed to leveraging its operational efficiencies and maintaining its market position in the automotive parts retail sector.