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May 08, 2021

Autozone Q3 2021 Earnings Report

AutoZone reported strong Q3 2021 results, with significant growth in same-store sales and EPS.

Key Takeaways

AutoZone reported a strong third quarter with a 31.4% increase in net sales to $3.7 billion. Same store sales increased by 28.9%, and diluted earnings per share increased by 84.0% to $26.48. The company continues to invest in commercial business and manage operations effectively.

Net sales increased by 31.4% to $3.7 billion compared to the third quarter of fiscal 2020.

Domestic same store sales increased by 28.9% for the quarter.

Diluted earnings per share increased by 84.0% to $26.48.

Commercial business sales growth stood out as exceptional with a 44% increase.

Total Revenue
$3.65B
Previous year: $2.78B
+31.4%
EPS
$26.5
Previous year: $14.4
+84.0%
Same Store Sales Growth
28.9%
Previous year: -1%
-2990.0%
Gross Margin
52.4%
Previous year: 53.6%
-2.2%
Operating Expense Ratio
30.4%
Previous year: 35.9%
-15.3%
Gross Profit
$1.94B
Previous year: $0.536
+361716417810.4%
Cash and Equivalents
$976M
Previous year: $509M
+91.6%
Free Cash Flow
$1.05B
Previous year: $568M
+85.4%
Total Assets
$14.1B
Previous year: $12.9B
+9.6%

Autozone

Autozone

Forward Guidance

AutoZone anticipates sales trends will slow and is focused on maintaining recent share gains while continuing to invest in a safe and productive environment for customers and employees. The company remains committed to increasing operating earnings and cash flow, and utilizing its balance sheet and capital effectively.

Positive Outlook

  • Commitment to investing in a safe and productive environment
  • Focus on increasing operating earnings and cash flow
  • Disciplined approach to capital allocation
  • Excitement about ongoing sales opportunities
  • Continued investment in commercial pricing, service and assortment

Challenges Ahead

  • Expectation that sales trends will slow
  • Need to diligently maintain share gains achieved
  • Uncertainty due to the ongoing pandemic
  • Potential impacts from various risk factors including competition and economic conditions
  • Dependence on managing external factors such as product demand and energy prices