AutoZone 4th Quarter Similar Retailer Gross sales Enhance 6.2%; 4th Quarter EPS Will increase to $40.51; Annual Gross sales of $16.3 Billion

MEMPHIS, Tenn., Sept. 19, 2022 (GLOBE NEWSWIRE) — AutoZone, Inc. (NYSE: AZO) right this moment reported internet gross sales of $5.3 billion for its fourth quarter (16 weeks) ended August 27, 2022, a rise of 8.9% from the fourth quarter of fiscal 2021 (16 weeks). Home identical retailer gross sales, or gross sales for shops open at the very least one yr, elevated 6.2% for the quarter.

“Our outcomes are a testomony to our AutoZoners’ ongoing dedication to delivering distinctive customer support each day.  Our retail enterprise carried out nicely this quarter ending with constructive identical retailer gross sales on prime of final yr’s robust efficiency.  And, our business enterprise progress continued to be exceptionally robust at 22%. The investments we’ve got made in each stock availability and expertise are enhancing our aggressive positioning.  We’re optimistic about our progress prospects heading into our new fiscal yr,”  mentioned Invoice Rhodes, Chairman, President and Chief Govt Officer.

For the quarter, gross revenue, as a proportion of gross sales, was 51.5%, a lower of 73 foundation factors versus the prior yr. The lower in gross margin was pushed by accelerated progress in our Industrial enterprise and a 28 foundation level non-cash LIFO cost pushed largely by rising freight prices. Working bills, as a proportion of gross sales, had been 30.9% versus 31.0% final yr.

Working revenue elevated 5.7% to $1.1 billion. Web revenue for the quarter elevated 3.1% over the identical interval final yr to $810.0 million, whereas diluted earnings per share elevated 13.4% to $40.51 from $35.72 within the year-ago quarter.

For the fiscal yr ended August 27, 2022, gross sales had been $16.3 billion, a rise of 11.1% from the prior yr, whereas home identical retailer gross sales had been up 8.4%. Gross revenue, as a proportion of gross sales, was 52.1% versus 52.8%. The lower in gross margin was primarily attributable to the initiatives to speed up progress in our Industrial enterprise. Working bills, as a proportion of gross sales, had been 32.0% versus 32.6%. For fiscal 2022, internet revenue elevated 11.9% to $2.4 billion and diluted earnings per share elevated 23.1% to $117.19 from $95.19. Return on invested capital completed at 52.9%.

Beneath its share repurchase program, AutoZone repurchased 474 thousand shares of its widespread inventory for $1 billion through the fourth quarter, at a median worth of $2,111 per share. For the fiscal yr, the Firm repurchased 2.2 million shares of its widespread inventory for $4.4 billion, at a median worth of $1,964 per share. At yr finish, the Firm had $1.058 billion remaining below its present share repurchase authorization.

The Firm’s stock elevated 21.5% over the identical interval final yr, pushed by our progress initiatives and inflation. Web stock, outlined as merchandise inventories much less accounts payable, on a per retailer foundation, was unfavorable $240 thousand versus unfavorable $203 thousand final yr and unfavorable $216 thousand final quarter.

“We’re dedicated to being the most effective place to buy everybody’s automotive wants whereas delivering on our ongoing promise to be a fantastic place to work. We consider our initiatives will drive progress within the new fiscal yr. As we proceed to prudently make investments capital in our enterprise, we stay steadfast in our long-term, disciplined method to growing working earnings and money flows whereas using our stability sheet successfully,” mentioned Rhodes.

Moreover, AutoZone introduced right this moment that Doug Brooks will not be standing for re-election to the Firm’s Board of Administrators on the Annual Assembly of Stockholders to be held December 14, 2022. “AutoZone has really benefited from Doug’s insightful steerage, tutelage, and repair these previous 9 years. Doug’s efforts have contributed to serving to make our Firm what it’s right this moment. I thank him for his management and dedication to our Firm, and I want him nicely in his future endeavors,” mentioned Rhodes.

In the course of the fiscal yr ended August 27, 2022, AutoZone opened 118 new shops and closed one within the U.S., opened 39 shops in Mexico and 20 shops in Brazil. As of August 27, 2022, the Firm had 6,168 shops within the U.S., 703 in Mexico and 72 in Brazil for a complete retailer rely of 6,943.

AutoZone is the main retailer and distributor of automotive substitute components and equipment within the Americas. Every retailer carries an in depth product line for vehicles, sport utility automobiles, vans and light-weight vehicles, together with new and remanufactured automotive arduous components, upkeep gadgets, equipment, and non-automotive merchandise. Many shops even have a business gross sales program that gives business credit score and immediate supply of components and different merchandise to native, regional and nationwide restore garages, sellers, service stations and public sector accounts. We even have business packages in all shops in Mexico and Brazil. AutoZone additionally sells the ALLDATA model automotive diagnostic, restore and store administration software program via www.alldata.com. Moreover, we promote automotive arduous components, upkeep gadgets, equipment and non-automotive merchandise via www.autozone.com, and our business prospects could make purchases via www.autozonepro.com. We additionally present product data on our Duralast branded merchandise via www.duralastparts.com. AutoZone doesn’t derive income from automotive restore or set up.

AutoZone will host a convention name this morning, Monday, September 19, 2022, starting at 10:00 a.m. (ET) to debate its fourth quarter outcomes. This name is being internet solid and will be accessed, together with supporting slides, at AutoZone’s web site at www.autozone.com and clicking on Investor Relations. Traders can also hearken to the decision by dialing (888) 506-0062, passcode 404601. As well as, a phone replay will likely be obtainable by dialing (877) 481-4010, replay passcode 46463 via October 3, 2022.

This launch contains sure monetary data not derived in accordance with typically accepted accounting rules (“GAAP”). These non-GAAP measures embrace changes to mirror return on invested capital, adjusted debt and adjusted debt to EBITDAR. The Firm believes that the presentation of those non-GAAP measures gives data that’s helpful to buyers because it signifies extra clearly the Firm’s comparative year-to-year working outcomes, however this data shouldn’t be thought of an alternative to any measures derived in accordance with GAAP. Administration targets the Firm’s capital construction with a view to keep its funding grade credit score scores. The Firm believes that is vital data for the administration of its debt ranges and share repurchases. Now we have included a reconciliation of this extra data to essentially the most comparable GAAP measures within the accompanying reconciliation tables.

Sure statements contained on this press launch represent forward-looking statements which can be topic to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements usually use phrases reminiscent of “consider,” “anticipate,” “ought to,” “intend,” “plan,” “will,” “anticipate,” “estimate,” “challenge,” “positioned,” “technique,” “search,” “might,” “may” and comparable expressions. These are based mostly on assumptions and assessments made by our administration in mild of expertise and notion of historic tendencies, present situations, anticipated future developments and different components that we consider to be acceptable. These forward-looking statements are topic to quite a lot of dangers and uncertainties, together with with out limitation: product demand, on account of adjustments in gasoline costs, miles pushed or in any other case; vitality costs; climate; competitors; credit score market situations; money flows; entry to obtainable and possible financing; future inventory repurchases; the affect of recessionary situations; client debt ranges; adjustments in legal guidelines or rules; dangers related to self-insurance; warfare and the prospect of warfare, together with terrorist exercise; the affect of public well being points, reminiscent of the continuing world coronavirus pandemic; inflation; the power to rent, practice and retain certified staff; building delays; the compromising of confidentiality, availability or integrity of data, together with on account of cyber-attacks; historic progress price sustainability; downgrade of our credit score scores; harm to our fame; challenges in worldwide markets; failure or interruption of our data expertise methods; origin and uncooked materials prices of suppliers; stock availability; disruption in our provide chain; affect of tariffs; anticipated affect of latest accounting requirements; and enterprise interruptions. Sure of those dangers and uncertainties are mentioned in additional element within the “Danger Components” part contained in Merchandise 1A below Half 1 of the Firm’s Annual Report on Kind 10-Ok for the yr ended August 28, 2021, and these Danger Components ought to be learn rigorously. Ahead-looking statements are usually not ensures of future efficiency, and precise outcomes, developments and enterprise choices might differ from these contemplated by such forward-looking statements, and occasions described above and within the “Danger Components” may materially and adversely have an effect on our enterprise. Nevertheless, it ought to be understood that it’s not potential to establish or predict all such dangers and different components that might have an effect on these forward-looking statements. Ahead-looking statements communicate solely as of the date made. Besides as required by relevant legislation, we undertake no obligation to replace publicly any forward-looking statements, whether or not because of new data, future occasions or in any other case.

Contact Info:
Monetary: Brian Campbell at (901) 495-7005, [email protected]
Media: David McKinney at (901) 495-7951, [email protected]