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Feb 15, 2020

Autozone Q2 2020 Earnings Report

AutoZone's Q2 2020 earnings decreased slightly due to challenging sales, but EPS increased.

Key Takeaways

AutoZone reported a slight increase in net sales, but same store sales decreased. Despite the challenging sales environment, the company delivered solid earnings, with EPS increasing by 7.8%.

Net sales increased by 2.6% to $2.5 billion.

Domestic same store sales decreased by 0.8%.

Diluted earnings per share increased by 7.8% to $12.39.

Gross profit, as a percentage of sales, increased to 54.3%.

Total Revenue
$2.51B
Previous year: $2.45B
+2.6%
EPS
$12.4
Previous year: $11.5
+7.8%
Same Store Sales Growth
-0.8%
Previous year: 2.6%
-130.8%
Gross Margin
54.3%
Previous year: 54.1%
+0.4%
Operating Expense Ratio
38.1%
Previous year: 37.7%
+1.1%
Gross Profit
$54.3
Previous year: $1.33B
-100.0%
Cash and Equivalents
$153M
Previous year: $196M
-21.8%
Free Cash Flow
$115M
Previous year: $270M
-57.3%
Total Assets
$12.9B
Previous year: $9.75B
+32.0%

Autozone

Autozone

Forward Guidance

AutoZone is optimistic about prospects for the balance of the year, focusing on strategic initiatives.

Positive Outlook

  • Great service
  • Further penetration of the Commercial market
  • Enhanced inventory assortments
  • Improved local market expanded parts availability
  • Leveraging technology to improve customer interactions and increase efficiency

Challenges Ahead

  • Product demand
  • Energy prices
  • Weather
  • Competition
  • Credit market conditions