AutoZone, Inc. (NYSE:AZO) shares dipped Tuesday after the auto parts retailer reported fourth-quarter earnings and sales that fell short of Wall Street expectations. However, the stock recovered its earlier losses and is now trading slightly higher.
The company reported fourth-quarter earnings per share of $48.71, missing the analyst consensus estimate of $50.91.
Quarterly sales of $6.242 billion (+0.6% year over year) missed the Street view of $6.245 billion.
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Excluding sales from the additional week included in last year’s quarter, adjusted sales were up 6.9%.
AutoZone’s fourth-quarter total company same-store sales rose 5.1%. Domestic same-store sales increased 4.8%.
Gross margin was 51.5%, down 98 bps year over year. The decline reflects a 128 bps non-cash LIFO headwind from an $80 million charge versus no LIFO impact last year.
Operating profit decreased 7.8% to $1.2 billion. Net income for the quarter was $837.0 million compared to $902.2 million in the prior year.
AutoZone repurchased 117,000 shares in the fourth quarter at an average price of $3,821. The total buyback outlay was $446.7 million.
The company’s inventory increased 14.1% over the same period last year, driven primarily by growth initiatives.
In the quarter ended August 30, 2025, AutoZone opened 91 U.S. stores and closed one. It also opened 45 in Mexico and six in Brazil, totaling 141 net new stores.
AutoZone said its international unit continued to perform well, with constant-currency same-store sales up 7.2%. It opened 141 net new stores in the quarter and 304 for the year, and expects to accelerate openings next year as it pursues long-term market-share gains.
“We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time. As we continue to invest in our business, we expect that our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value,” said Phil Daniele, President and Chief Executive Officer.
AutoZone exited the quarter with cash and equivalents worth $271.803 million.
Price Action: AZO shares were trading higher by 0.18% to $4,128.46 at last check Tuesday.
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