AutoZone, Inc.
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsAutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas, operating 7,856 stores across the U.S., Mexico, and Brazil as of May 9, 2026.
What they do
AutoZone operates retail stores carrying new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products for cars, SUVs, vans, and light trucks. The majority of its stores run a commercial sales program providing delivery and credit to repair garages, dealers, service stations, and fleet owners. It also sells through autozone.com and autozonepro.com, and offers ALLDATA diagnostic and shop management software. The company does not derive revenue from repair or installation services.
Revenue drivers
- Domestic retail (DIY) sales — Sales to do-it-yourself customers through U.S. stores; domestic same store sales rose 4.1% in the latest quarter.
- Domestic commercial sales — Delivery and credit to repair garages, dealers, service stations, and fleet owners; 6,356 domestic stores had a commercial program as of May 9, 2026.
- International operations — Retail and commercial sales in Mexico (933 stores) and Brazil (157 stores); international same store sales rose 16.6% reported but only 1.6% in constant currency in the latest quarter.
- ALLDATA software — Subscription sales of automotive diagnostic, repair, collision and shop management software through alldata.com.
Recent performance
For the third quarter ended May 9, 2026, net sales rose 8.4% to $4.8 billion, with total company same store sales up 5.5% (3.9% in constant currency). Gross margin was 52.2%, down 57 basis points, driven by a 77 basis point net non-cash LIFO impact. Operating profit increased 6.6% to $923.8 million, operating margin returned above 19%, and net income was $641.5 million with diluted EPS of $38.07 versus $35.36 a year ago. The company repurchased 164 thousand shares for $586.3 million at an average price of $3,582.
Strategy
AutoZone is pursuing domestic and international store growth, opening 82 new stores in the third quarter with plans for approximately 355-365 for the full fiscal year. It is investing in growth initiatives that increased inventory 10.8% year over year, partly due to inflation. The company continues share repurchases under its program, with $0.8 billion remaining, and focuses on expense management and gaining market share. Management emphasizes disciplined execution to increase earnings and cash flows.
Risks
- International performance — International same store sales growth was only 1.6% in constant currency in the latest quarter, with both Mexico and Brazil performing similarly and below plan.
- Gross margin pressure — Gross margin decreased 57 basis points in the third quarter, driven by a 77 basis point net non-cash LIFO impact.
- Supply chain and inflation — Inventory increased 10.8%, driven by growth initiatives and inflation, while tariffs and trade policies are noted as risks.
- Negative shareholder equity — Shareholder equity was negative $2.78 billion as of May 9, 2026, reflecting ongoing share repurchases and debt levels.
Outlook
Management stated international performance has been below plan but believes market share continues to grow as it outpaces competition in Mexico and Brazil. The company plans to open approximately 355-365 stores globally in fiscal 2026. It remains focused on gaining market share and disciplined earnings and cash flow growth.