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Aug 26, 2023

Autozone Q4 2023 Earnings Report

AutoZone reported a net sales increase of 6.4% and EPS increase of 14.7% for the fourth quarter of fiscal year 2023.

Key Takeaways

AutoZone reported a solid fourth quarter with a 6.4% increase in net sales, reaching $5.7 billion. Diluted earnings per share increased by 14.7% to $46.46. The company opened 96 net new stores during the quarter and repurchased 403 thousand shares of its common stock.

Net sales for the fourth quarter increased by 6.4% to $5.7 billion.

Diluted earnings per share increased by 14.7% to $46.46.

The company opened 96 net new stores during the quarter.

AutoZone repurchased 403 thousand shares of its common stock for $1.0 billion.

Total Revenue
$5.69B
Previous year: $5.35B
+6.4%
EPS
$46.5
Previous year: $40.5
+14.7%
Same Store Sales Growth
1.7%
Previous year: 6.2%
-72.6%
Gross Margin
52.7%
Previous year: 51.5%
+2.3%
Operating Expense Ratio
31.2%
Previous year: 30.9%
+1.0%
Gross Profit
$3B
Previous year: $2.73B
+9.9%
Cash and Equivalents
$277M
Previous year: $264M
+4.8%
Free Cash Flow
$702M
Previous year: $925M
-24.1%
Total Assets
$16B
Previous year: $15.3B
+4.7%

Autozone

Autozone

Forward Guidance

AutoZone is focused on driving stronger growth in fiscal 2024 through initiatives in domestic Commercial and continued expansion in International markets.

Positive Outlook

  • Initiatives in place to drive stronger growth in fiscal 2024.
  • Pleased with International stores’ performance.
  • Excited about future growth prospects across both Mexico and Brazil.
  • Committed to prudently investing capital in the business.
  • Steadfast in long-term, disciplined approach to increasing operating earnings and cash flows.

Challenges Ahead

  • Lower than expected growth in domestic Commercial during the quarter.
  • Subject to risks and uncertainties including product demand changes due to fuel prices.
  • Energy prices and weather conditions could impact results.
  • Competition and credit market conditions pose challenges.
  • Inflation, including wage inflation, could affect profitability.