AutoZone Q1 Results Fall Short of Estimates Despite Growing Sales | Global News Avenue

automatic zone (Azo) first-quarter results released Tuesday morning came in slightly below expectations, but Chief Executive Officer (CEO) Phil Daniele said the auto parts retailer remains “well-positioned for growth” through the remainder of fiscal 2025.

The auto parts retailer reports 2% year-over-year growth income increased to US$4.28 billion, while net income $564.9 million was down about 5%. Analysts had expected revenue of $4.31 billion and a smaller drop in net profit of $580.8 million, according to estimates compiled by Visible Alpha.

AutoZoneDomestic Same store sales (SSS) Year-on-year growth was 0.3%, lower than analysts’ expectations of 0.67%. International same-store sales increased 1%, or 13.7% in constant currency.

Currency impact hurts sales

“While currency movements dampened reported sales and earnings growth, our international results remain encouraging as we continue to focus on opening additional stores in these markets,” said Daniele, adding that AutoZone’s efforts to improve customer experience and Plans to expand the company’s market share are underway. “On track.”

The automatic zone is one of many retailers have Notice the negative effects exist discretionary spending Inflation has forced many Americans to spend more on necessities in recent quarters. The trend may be turning a corner, with Daniel saying the company is “pleased” with sales growth in the do-it-yourself (DIY) category, with both average tickets and traffic increasing from last quarter.

AutoZone shares fell more than 2% to $3,238 in premarket trading. As of Monday’s close, the stock price has risen nearly 30% this year.