Share from AutoZone (NYSE: AZO ) rose on Tuesday after the auto parts and accessories distributor reported stronger-than-expected earnings.
Missed “Act 1” AI? Action 2 Can be 15x bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1” – the R&D phase. “Act 2” is a global rollout. Continue »
AutoZone is expanding its store count at a solid clip
AutoZone’s net sales rose 5.6% year over year to $6.6 billion in the fiscal 2026 fourth quarter, which ended Aug. 29.
The auto parts supplier opened 175 stores during the quarter and a total of 374 over the 12 months. AutoZone ended the period with 8,031 stores, including 6,863 stores in the U.S., 1,001 in Mexico, and 167 in Brazil.
Additionally, same-store sales, which measure revenue from locations open at least one year, rose 2.7%, or 1.5% when excluding foreign currency fluctuations.
“We are increasing the number of stores, opening the most stores in a year, increasing our assortment and stock position, and continuing to invest in systems to provide better customer service,” CEO Phil Daniele said during a conference call with analysts.
Even better, the rate refund helped boost AutoZone’s operating profit by 10% to $1.3 billion. Net income was up 11% to $931.6 million. And earnings per share, boosted by share buybacks, jumped 15% to $56.05.
That topped Wall Street estimates, which called for earnings per share of $53.89, according to Yahoo! Finance.
Management sees further growth in the US and internationally
Despite higher gas prices and a challenging overall economic environment, AutoZone expects more gains next year.
“During the last eight weeks of the quarter, our sales results were strong, and we feel we are well positioned for sales growth in fiscal 2027,” Daniele said.
Should you buy stock in AutoZone now?
Before you buy stock in AutoZone, consider this:
At Motley Fool Stock Advisor The team of analysts only recognized what they believed it to be 10 best stocks to buy investors now… and AutoZone is not one of them. 10 stocks that made the cut could produce monster returns in the coming years.
Try when Netflix created this list on December 17, 2004… if you invest $1,000 when you recommend, you will have $395,625!* Or when Nvidia created this list on April 15, 2005… if you invest $1,000 when you recommend, you will have $1,397,147!*