By Denny Jacob
AutoZone partially exceeded Wall Street's expectations but Chief Executive Phil Daniele said foreign currency fluctuations pressured results.
"While currency rate moves continued to pressure reported sales and earnings," said Daniele, "we believe our international operations are positioned well as we continue to focus on opening more stores in these markets."
The Memphis, Tenn. aftermarket car-parts retailer recorded net income of $608.4 million, or $35.36 a share, for the third quarter ended May 10, down from $651.7 million, or $36.69 a share, in the prior-year period. Analysts polled by FactSet expected $36.78 a share.
Sales rose to $4.46 billion from $4.24 billion. Analysts polled by FactSet expected $4.42 billion.
Same store sales, or sales of its domestic and international stores open at least one year, rose 3.2% over the three-month period.
Gross profit as a percentage of sale came in at 52.7%, a decrease of 77 basis points from the prior-year. AutoZone said the decrease in gross margin was negatively impacted by higher inventory shrink, higher commercial mix, new distribution center startup costs and a 21-basis point non-cash LIFO impact.
AutoZone's results come days after Advance Auto Parts maintained its outlook for the year while reporting better-than-expected results in its latest quarter.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
May 27, 2025 08:17 ET (12:17 GMT)
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