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Feb 15

Autozone Q2 2025 Earnings Report

AutoZone reported a 2.4% increase in net sales and a 2.1% decrease in diluted EPS for Q2 FY25.

Key Takeaways

AutoZone's Q2 FY25 results showed a 2.4% increase in net sales to $3.95 billion. However, net income declined by 5.3% to $487.9 million, and diluted EPS fell 2.1% to $28.29. Operating profit decreased 4.9% due to higher operating expenses, and gross margin remained flat at 53.9%.

Net sales increased by 2.4% to $3.95 billion.

Net income declined by 5.3% to $487.9 million.

Operating profit fell 4.9% to $706.8 million.

Same-store sales increased 2.9% on a constant currency basis.

Total Revenue
$3.95B
Previous year: $3.86B
+2.4%
EPS
$28.3
Previous year: $28.9
-2.1%
Domestic same store sales
2.9%
Previous year: 0.02%
+19233.3%
Gross margin
53.9%
Previous year: 0.54%
+9900.0%
Operating expense ratio
36%
Previous year: 0.35%
+10304.6%
Gross Profit
$2.13B
Previous year: $2.1B
+1.3%
Cash and Equivalents
$301M
Previous year: $304M
-1.0%
Total Assets
$18.1B
Previous year: $16.7B
+8.4%

Autozone

Autozone

Autozone Revenue by Geographic Location

Forward Guidance

AutoZone expects continued sales growth but anticipates cost pressures affecting margins. The company is optimistic about its store expansion and operational efficiency initiatives.

Positive Outlook

  • Continued momentum in domestic DIY and commercial sales.
  • International business growth despite currency fluctuations.
  • Strong cash flow and disciplined capital allocation.
  • Expansion plans include new store openings in key markets.
  • Focus on operational efficiencies to drive long-term profitability.

Challenges Ahead

  • Higher operating expenses impacting profitability.
  • Currency exchange fluctuations affecting international earnings.
  • Increased competition in the automotive retail sector.
  • Potential macroeconomic uncertainties affecting consumer spending.
  • Ongoing supply chain challenges impacting inventory management.