Shares of AutoZone (AZO +3.26%) rose on Tuesday after the automotive replacement parts and accessories distributor reported stronger-than-expected profits.
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AutoZone is expanding its store count at a solid clip
AutoZone's net sales grew 5.6% year over year to $6.6 billion in its fiscal 2026 fourth quarter, which ended on Aug. 29.
The auto-parts purveyor opened 175 stores during the quarter and a total of 374 over the trailing 12 months. AutoZone ended the period with 8,031 stores, including 6,863 stores in the U.S., 1,001 in Mexico, and 167 in Brazil.
Additionally, same-store sales, which measure revenue from locations open for at least a year, increased by 2.7%, or 1.5% when excluding foreign currency fluctuations.
"We grew our total store count, opening the most stores ever in a single year, improved on our assortment and in-stock positions, and continued to invest in systems to deliver even better customer service," CEO Phil Daniele said during a conference call with analysts.
NYSE: AZO
Key Data Points
Better still, tariff refunds helped to drive AutoZone's operating profit up by 10% to $1.3 billion. Its net income, in turn, increased 11% to $931.6 million. And its earnings per share, boosted by stock buybacks, jumped 15% to $56.05.
That topped Wall Street's estimates, which had called for per-share profits of $53.89, according to Yahoo! Finance.
Management sees further growth in the U.S. and internationally
Despite higher gas prices and a challenging overall economic environment, AutoZone expects more gains in the year ahead.
"Over the last eight weeks of the quarter, our sales results strengthened, and we feel we are well-positioned for sales growth in fiscal 2027," Daniele said.
