MEMPHIS, Tenn., Dec. 09, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.6 billion for its first quarter (12 weeks) ended November 22, 2025, an increase of 8.2% from the first quarter of fiscal 2025 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows:

   Constant Currency
 12 Weeks 12 Weeks*
    
Domestic4.8% 4.8%
International11.2% 3.7%
Total Company5.5% 4.7%
* Excludes impacts from fluctuations of foreign exchange rates.   
    

For the quarter, gross profit, as a percentage of sales, was 51.0%, a decrease of 203 basis points versus the prior year. The decrease in gross margin was driven by a 212 basis point non-cash LIFO impact, partially offset by other net margin improvements. Operating expenses, as a percentage of sales, were 34.0% versus last year at 33.3%. Deleverage was primarily driven by investments to support our growth initiatives.

Operating profit decreased 6.8% to $784.2 million. Net income for the quarter was $530.8 million compared to $564.9 million in the same period last year, while diluted earnings per share were $31.04 compared to last year at $32.52.

Under its share repurchase program, AutoZone repurchased 108 thousand shares of its common stock during the first quarter, at an average price per share of $3,999, for a total investment of $431.1 million. At the end of the first quarter, the Company had $1.7 billion remaining under its current share repurchase authorization.

The Company’s inventory increased 13.9% over the same period last year, driven primarily by growth initiatives and inflation. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $145 thousand versus negative $166 thousand last year and negative $131 thousand last quarter.

“I would like to thank our AutoZoners for delivering another quarter of strong sales growth. Our Domestic and International businesses performed well throughout the quarter as we continue to execute on our growth initiatives. We were especially pleased to open 53 net new stores globally in the quarter and we plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share. As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value,” said Phil Daniele, President and Chief Executive Officer.

During the quarter ended November 22, 2025, AutoZone opened 39 new stores in the U.S., 12 in Mexico and two in Brazil for a total of 53 net new stores. As of November 22, 2025, the Company had 6,666 stores in the U.S., 895 in Mexico and 149 in Brazil for a total store count of 7,710.

AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services.

AutoZone will host a conference call this morning, Tuesday, December 9, 2025, beginning at 10:00 a.m. (ET) to discuss its first quarter results. This call is being web cast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com by clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 52975 through December 23, 2025.

This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.

Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs, trade policies and other geopolitical factors; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 30, 2025. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” section could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com
Media: Jennifer Hughes at (901) 495-6022, jennifer.hughes@autozone.com


AutoZone's 1st Quarter Highlights - Fiscal 2026
       
Condensed Consolidated Statements of Operations
    
1st Quarter, FY2026
     
(in thousands, except per share data)
     
  GAAP Results  
  12 Weeks Ended 12 Weeks Ended  
  November 22, 2025 November 23, 2024  
       
Net sales
$4,628,630  $4,279,641   
Cost of sales
 2,269,317   2,011,584   
Gross profit
 2,359,313   2,268,057   
Operating, SG&A expenses
 1,575,108   1,426,908   
Operating profit (EBIT)
 784,205   841,149   
Interest expense, net
 106,270   107,629   
Income before taxes
 677,935   733,520   
Income tax expense
 147,112   168,587   
Net income
$530,823  $564,933   
Net income per share:
     
 Basic$31.88  $33.40   
 Diluted$31.04  $32.52   
Weighted average shares outstanding:
     
 Basic 16,652   16,913   
 Diluted 17,102   17,370   
       
 Selected Balance Sheet Information     
 (in thousands)     
  November 22, 2025 November 23, 2024 August 30, 2025
       
Cash and cash equivalents
$287,639  $304,018  $271,803 
Merchandise inventories
 7,144,353   6,274,070   7,025,688 
Current assets
 8,403,750   7,420,550   8,341,379 
Property and equipment, net
 7,236,243   6,281,103   7,062,509 
Operating lease right-of-use assets
 3,251,395   3,086,857   3,194,666 
Total assets
 19,665,585   17,465,762   19,355,324 
Accounts payable
 8,262,343   7,498,696   8,025,590 
Current liabilities
 9,775,170   8,888,570   9,519,397 
Operating lease liabilities, less current portion
 3,139,227   2,982,977   3,093,936 
Total Debt
 8,623,112   9,012,539   8,799,775 
Stockholders' deficit
 (3,228,607)  (4,672,921)  (3,414,313)
Working capital
 (1,371,420)  (1,468,020)  (1,178,018)


AutoZone's 1st Quarter Highlights - Fiscal 2026
      
Condensed Consolidated Statements of Operations    
      
Adjusted Debt / EBITDAR    
(in thousands, except adjusted debt to EBITDAR ratio)    
   Trailing 4 Quarters
   November 22, 2025 November 23, 2024
Net income $2,464,137  $2,633,897 
Add: Interest expense  474,465   467,823 
 Income tax expense  614,610   679,533 
EBIT  3,553,212   3,781,253 
      
Add: Depreciation and amortization  628,220   562,704 
 Rent expense(1)  469,499   454,189 
 Share-based expense  129,327   109,450 
EBITDAR $4,780,258  $4,907,596 
      
Debt $8,623,112  $9,012,539 
Financing lease liabilities  373,545   388,847 
Add: Rent x 6(1)  2,816,994   2,725,134 
Adjusted debt $11,813,651  $12,126,520 
      
Adjusted debt to EBITDAR  2.5   2.5 
      
Adjusted Return on Invested Capital (ROIC)    
(in thousands, except ROIC)    
   Trailing 4 Quarters
   November 22, 2025 November 23, 2024
Net income $2,464,137  $2,633,897 
Adjustments:    
 Interest expense  474,465   467,823 
 Rent expense(1)  469,499   454,189 
 Tax effect(2)  (188,792)  (189,013)
Adjusted after-tax return $3,219,309  $3,366,896 
      
Average debt(3) $8,868,127  $8,849,457 
Average stockholders' deficit(3)  (3,949,604)  (4,862,353)
Add: Rent x 6(1)  2,816,994   2,725,134 
Average financing lease liabilities(3)  391,144   349,471 
Invested capital $8,126,661  $7,061,709 
      
Adjusted After-Tax ROIC  39.6%  47.7%
         
(1)The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended November 22, 2025, and November 23, 2024.
 
   Trailing 4 Quarters
(in thousands) November 22, 2025 November 23, 2024
Total lease cost, per ASC 842 $635,731  $602,034 
Less: Financing lease interest and amortization  (121,487)  (108,665)
Less: Variable operating lease components, related to insurance and common area maintenance
  (44,745)  (39,180)
Rent expense $469,499  $454,189 
        
(2)Effective tax rate over the trailing four quarters ended November 22, 2025, and November 23, 2024, was 20.0% and 20.5%, respectively.
(3)All averages are computed based on trailing five quarter balances.
      
Other Selected Financial Information    
(in thousands)    
   November 22, 2025 November 23, 2024
Cumulative share repurchases ($ since fiscal 1998) $38,948,745  $37,491,245 
Remaining share repurchase authorization ($)  1,701,255   1,658,755 
      
Cumulative share repurchases (shares since fiscal 1998)  155,736   155,341 
      
Shares outstanding, end of quarter  16,585   16,810 
      
   12 Weeks Ended 12 Weeks Ended
   November 22, 2025 November 23, 2024
      
Depreciation and amortization $148,194  $133,173 
      
Cash flow from operations  944,171   811,803 
      
Capital spending  314,173   247,035 
      



AutoZone's 1st Quarter Highlights - Fiscal 2026    
Condensed Consolidated Statements of Operations      
Selected Operating Highlights       
         
Store Count & Square Footage       
         
  12 Weeks Ended 12 Weeks Ended    
  November 22, 2025 November 23, 2024    
Domestic:       
 Beginning stores 6,627   6,432     
 Stores opened 39   23     
 Stores closed -   -     
 Ending domestic stores 6,666   6,455     
         
 Relocated stores 3   2     
         
 Stores with commercial programs 6,182   5,935     
         
 Square footage (in thousands) 44,433   42,844     
         
Mexico:       
 Beginning stores 883   794     
 Stores opened 12   6     
 Ending Mexico stores 895   800     
         
Brazil:       
 Beginning stores 147   127     
 Stores opened 2   5     
 Ending Brazil stores 149   132     
         
Total 7,710   7,387     
         
Total Company stores opened, net 53   34     
         
 Square footage (in thousands) 52,219   49,781     
 Square footage per store 6,773   6,739     
         
Sales Statistics       
($ in thousands, except sales per average square foot)       
  12 Weeks Ended 12 Weeks Ended Trailing 4 Quarters Trailing 4 Quarters
Total AutoZone Stores (Domestic, Mexico and Brazil)November 22, 2025 November 23, 2024 November 22, 2025 November 23, 2024(1)
 Sales per average store$602  $570  $2,555  $2,506 
 Sales per average square foot$89  $85  $378  $373 
         
Domestic Commercial       
 Total domestic commercial sales$1,291,893  $1,128,237  $5,375,950  $4,918,080 
 % Increase vs. LY 14.5%  3.2%  9.3%  5.6%
         
 Average sales per program per week$17.5  $15.9  $17.1  $15.8 
 % Increase vs. LY 10.1%  0.0%  8.2%  (0.6%)
         
(1)Trailing 4 Quarters ending November 23, 2024 include an additional week of sales of approximately $359.1 million for Total AutoZone Stores with $95.7 million for Domestic Commercial. Sales per average store and sales per square foot benefited from the additional week by $49k, and $7k, respectively.
               
  12 Weeks Ended 12 Weeks Ended    
Same store sales(2)November 22, 2025 November 23, 2024    
 Domestic 4.8%  0.3%    
 International 11.2%  1.0%    
 Total Company 5.5%  0.4%    
         
 International - Constant Currency 3.7%  13.7%    
 Total Company - Constant Currency 4.7%  1.8%    
         
(2)Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.
         
Inventory Statistics (Total Stores)       
  as of as of    
  November 22, 2025 November 23, 2024    
 Accounts payable/inventory 115.6%  119.5%    
         
 ($ in thousands)       
 Inventory$7,144,353  $6,274,070     
 Inventory per store 927   849     
 Net inventory (net of payables) (1,117,990)  (1,224,626)    
 Net inventory/per store (145)  (166)    
         
  Trailing 5 Quarters    
  November 22, 2025 November 23, 2024    
 Inventory turns 1.4x  1.4x    
         

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Source: AutoZone, Inc.

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