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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%
Same Store Sales Growth
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

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.