Loading...
•
May 10
Autozone Q3 2025 Earnings Report
AutoZone reported a solid quarter with strong domestic sales growth and accelerating commercial activity, though margins and net income declined.
Key Takeaways
AutoZone delivered higher revenue driven by 5.0% growth in domestic same store sales. However, profitability metrics declined due to higher inventory shrink, insurance costs, and startup distribution center expenses.
Revenue rose to $4.5 billion, up 5.4% year-over-year.
Domestic same store sales grew 5.0%, signaling strong performance in core markets.
Gross margin declined by 77 basis points due to shrink and cost pressures.
Net income decreased 6.6% year-over-year to $608.4 million.
Autozone
Autozone
Autozone Revenue by Geographic Location
Revenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
AutoZone expects to sustain momentum into Q4, supported by investments in growth, stronger distribution capabilities, and summer season demand.
Positive Outlook
- Sales momentum accelerated from the previous quarter
- Domestic DIY and Commercial segments both performed well
- International same store sales grew 8.1% in constant currency
- Investments in distribution centers expected to improve margins
- Company remains committed to achieving targeted returns on capital
Challenges Ahead
- Gross margin pressured by inventory shrink and startup costs
- Higher self-insurance expenses drove operating deleverage
- Currency headwinds negatively impacted reported sales and earnings
- Operating profit and net income declined year-over-year
- LIFO accounting impact reduced gross profit by $8 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income