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AutoZone’s Profit Shrinks and Misses Estimates Despite Rising Sales
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Key Points
- Autozone reported that despite a rise in net sales, net revenues were also declining year-on-year.
- As domestic growth can hardly offset international declines, same-store sales growth has lost expectations.
- CEO Phil Daniele said the company is under pressure from foreign currency movement.
Autozone’s (Available) Fiscal second-quarter profit fell year-on-year, and even if revenues grew, there was no expectation before Tuesday’s bell.
The auto retailer’s net sales were $3.95 billion, up about 2% year-on-year, but far from reaching the analyst consensus of Visible Alpha. Net income fell 5.3% to $487.92 million, or $28.29 per share, from $515.03 million or $28.89 per share a year ago, losing expectations. Profit slideshow as operation and SG&A Fees Increased by 6%.
Autozone’s same-store sales rose 0.5%, down from analysts’ expectations of 0.7%. Domestic increase of 1.9% Same-store sales Slightly offset the international decline of 8.2%, which is CEO Phil Daniele attributes foreign currency exchange rate pressure. Daniele posted similar comments on foreign currency One quarter ago.
Autozone shares rose less than 1% on Tuesday, up about 13% in the past 12 months, including a record peak on Friday.
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