AutoZone, Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories in the United States. The company operates a vast network of stores across the U.S., Mexico, and Brazil, catering to both do-it-yourself customers and professional service providers. AutoZone competes with other major players in the automotive parts industry, such as Advance Auto Parts and O'Reilly Automotive.
On September 23, 2025, AutoZone reported earnings per share (EPS) of $48.71, which was below the estimated $50.52. The company's revenue was approximately $6.24 billion, slightly missing the estimated $6.25 billion.
AutoZone's gross profit margin for the quarter was 51.5%, a decrease of 98 basis points from the previous year. This decline was mainly due to a 128 basis point non-cash LIFO impact, resulting in an $80 million LIFO charge this quarter. However, higher merchandise margins partially offset this impact. Operating expenses increased to 32.4% of sales, up from 31.6% last year, driven by investments in growth initiatives.
The company's total same-store sales increased by 5.1%, with domestic same-store sales rising by 4.8%. This growth was supported by stable same-store sales and the expansion of stores both domestically and internationally. However, margin pressures remain a concern due to increased inventory shrink, a higher proportion of commercial sales, and costs related to new distribution center startups.
AutoZone's market capitalization is $71 billion, with a price-to-earnings (P/E) ratio of approximately 26.92. The company's price-to-sales ratio is about 3.65, and its enterprise value to sales ratio is around 4.28. AutoZone's earnings yield is about 3.71%, and it has a debt-to-equity ratio of approximately -3.07, indicating a higher level of debt compared to its equity. The current ratio is approximately 0.84, reflecting its ability to cover short-term liabilities with short-term assets.
