AutoZone Q4 Profit Rises, Domestic Same Store Sales Up 2.1%

(RTTNews) - Automotive parts retailer AutoZone, Inc. (AZO) Monday said fourth-quarter profit increased from the previous year, supported by growth in sales at stores open at least one year. The previous year's fourth quarter included 17 weeks.

On a 16 week basis, net income for the quarter increased 7.4 percent to $373.7 million from $347.8 million in the previous year. Including the additional week in last fiscal year, net income rose 0.7 percent over the previous year's quarter.

Earnings per share increased to $11.28 from $9.76 in the year-ago quarter. For the 17 weeks ended August 31, 2013, earnings totaled $371.2 million or $10.42 per share.

On average, 22 analysts polled by Thomson Reuters expected earnings of $11.26 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for 16 weeks climbed 4.5 percent to $3.05 billion from $2.92 billion in the prior year. Net sales totaled $3.1 billion for the 17 weeks ended August 31, 2013. Analysts estimated revenues of $3.07 billion.

Including sales from the additional week in last year's quarter, sales decreased 1.5 percent. Domestic same store sales, or sales for stores open at least one year, grew 2.1 percent for the quarter.

Gross margin was 52.3 percent compared to 51.8 percent last year. Under its share repurchase program, AutoZone bought back 356 thousand shares of its common stock for $188 million during the quarter, at an average price of $528 per share.

AutoZone's inventory increased 9.8 percent, driven by increased product placement and new stores. Inventory per store was $582 thousand compared to $550 thousand last year.

Bill Rhodes, chairman, president and chief executive officer, said, "...the fourth quarter of fiscal 2014, on a 16 week adjusted basis, marked our thirty-second consecutive quarter of double digit earnings per share growth."

During the quarter, AutoZone opened 83 new stores in the U.S., 28 new stores in Mexico, and one new store in Brazil.

AZO closed down 1.1 percent on Friday at $526.44.