AutoZone, Inc. reported a net sales increase of 2.4% for the fiscal year ending August 30, 2025, reaching $18.9 billion, compared to $18.5 billion in the previous year. The growth was primarily driven by a 3.2% increase in domestic same-store sales and a $374.3 million contribution from new store openings. However, the company experienced a decline in operating profit, which fell by 4.7% to $3.6 billion, and net income decreased by 6.2% to $2.5 billion. Diluted earnings per share also saw a reduction of 3.1%, dropping to $144.87. The fiscal year 2025 consisted of 52 weeks, while the previous year included 53 weeks, which had a positive impact on sales and profit figures for fiscal 2024.
In terms of operational changes, AutoZone expanded its store count, opening 305 new locations, bringing the total to 7,657 stores across the Americas, including 6,627 in the U.S., 883 in Mexico, and 147 in Brazil. The company also reported a significant increase in its employee headcount, reaching approximately 130,000, with 60% employed full-time. The commercial sales program was active in 6,098 domestic stores, contributing to a 6.7% increase in domestic commercial sales, which now represent 31.7% of total domestic sales.
The company faced challenges due to unfavorable foreign currency exchange rates, which negatively impacted net sales by $273.1 million and operating profit by $88.2 million. Additionally, a non-cash LIFO impact of $104 million further affected operating profit comparisons. Despite these challenges, AutoZone maintained a strong focus on its core product categories, with failure and maintenance-related items accounting for approximately 85% of total sales. The company continues to adapt its inventory to meet customer demands, particularly as the number of older vehicles on the road increases, which is expected to drive future sales.
Looking ahead, AutoZone anticipates moderate growth in fiscal 2026, with plans to invest in new stores and expand existing hub and mega hub locations. The company aims to leverage its strong market position and customer service reputation to navigate ongoing economic challenges, including inflation and supply chain disruptions. AutoZone's management remains optimistic about the long-term demand for automotive parts, driven by increasing vehicle mileage and the aging vehicle population. The company is committed to maintaining its investment-grade credit ratings while pursuing strategic growth initiatives.
About AUTOZONE INC
AutoZone, Inc. is a leading retailer and distributor of automotive replacement parts, accessories, and maintenance products across the Americas. Operating thousands of stores in the U.S., Mexico, and Brazil, it serves DIY customers and commercial clients such as repair shops and fleet owners. AutoZone offers extensive product assortments, proprietary brands, and online sales, emphasizing customer service, product availability, and competitive pricing through a multi-channel retail model.
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