AutoZone Inc (NYSE:AZO) stock rose 1.34% (As on September 24, 11:23:25 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that fell short of analyst expectations, as a significant LIFO charge impacted profitability despite solid same-store sales growth. Gross profit margin decreased 98 basis points to 51.5% compared to the prior year, primarily due to a $80 million non-cash LIFO charge in the current quarter versus none in the prior year. Operating expenses as a percentage of sales increased to 32.4% from 31.6% last year, which the company attributed to investments supporting growth initiatives. 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. The company opened 141 net new stores globally during the quarter, bringing its total store count to 7,657. During the quarter ended August 30, 2025, AutoZone opened 91 new stores and closed one in the U.S., opened 45 in Mexico and 6 in Brazil for a total of 141 net new stores. AutoZone’s inventory increased 14.1% over the same period last year, driven by growth initiatives.
AZO in the fourth quarter of FY 25 has reported the adjusted earnings per share of $48.71, missing the analysts’ estimates for the adjusted earnings per share of $50.93. The company had reported the adjusted revenue growth of 6.9 percent to $6.24 billion in the fourth quarter of FY 25, which is inline with the analysts’ estimates for revenue of $ billion. Total company same-store sales rose 5.1% on a constant currency basis, with domestic same-store sales increasing 4.8%. Domestically, both DIY and Commercial sales improved sequentially throughout the quarter, and the company is pleased with the momentum heading into the new fiscal year. The international business also continued to deliver strong results, growing same store sales 7.2% on a constant currency basis. Commercial sales growth accelerated, increasing 6.0% versus Q4 FY24. The company have a Commercial Program in 92% of Domestic Stores.
Additionally, the company continued its share repurchase program, buying back 117,000 shares during the fourth quarter at an average price of $3,821 per share, for a total investment of $446.7 million. At year end, the Company had $632.3 million remaining under its current share repurchase authorization.
On the other hand, AZO announced that Bill Hackney, Executive Vice President, Merchandising, Marketing, and Supply Chain, and Rick Smith, Senior Vice President, Human Resources, will retire in November of 2025 (Hackney) and January of 2026 (Smith).