AutoZone(NYSE) AZO

AutoZone helps people keep their cars running with parts and tools. The company sells to individual drivers and professional repair shops. Its stores stock essential items like batteries and engines.

What is on the Shelves?

• Hard Parts: Components needed to fix mechanical failures; failure and maintenance categories made up 85% of net sales in the twelve weeks ended May 9, 2026.
• Maintenance Items: Products used for regular vehicle upkeep including fluids, filters, and windshield wipers.
• Accessories: Interior and exterior styling products, floor mats, and mobile phone tools.
• Commercial Program: Delivery and credit services for repair garages and dealerships; domestic sales reached $1.4 billion in the twelve weeks ended May 9, 2026.
• ALLDATA: Diagnostic and repair software used by professional mechanics to manage shops and fix vehicles.

Growing the Global Footprint

• Expanded the store network to 7,856 total locations across the U.S., Mexico, and Brazil as of May 9, 2026.
• Opened 199 net new stores during the thirty-six weeks ended May 9, 2026, to increase market reach.
• Increased investment in hub and mega hub projects to improve local parts availability for quick delivery.
• Filed for refunds of specific import tariffs in April 2026 following a U.S. Supreme Court ruling on trade law.

Built for the Long Haul

AutoZone operations correlate with the average age of vehicles and total miles driven by motorists. The company uses a distribution network of hubs and mega hubs to ensure parts are available for same-day delivery to customers and repair shops.

Performance by the Numbers

• Net sales rose 8.4% to $4.8 billion in the twelve weeks ended May 9, 2026.
• Operating profit reached $923.8 million in the twelve weeks ended May 9, 2026, a 6.6% increase year-over-year.
• Total company same store sales grew 3.9% on a constant currency basis during the twelve-week period ended May 9, 2026.
• Capital expenditures totaled $997.5 million for the thirty-six weeks ended May 9, 2026, driven by store expansion initiatives.
• The adjusted debt to EBITDAR ratio was 2.5 to 1 as of May 9, 2026; EBITDAR measures earnings before interest, taxes, depreciation, amortization, rent, and stock-based pay.

The Long Road Ahead

AutoZone has evolved into a major automotive distributor serving both consumer and professional repair markets. Its focus on essential repair parts provides a consistent foundation across various economic cycles.