AutoZone, Inc.(NYSE: AZO) reported a lower than expected same-store sales growth of 1% during the fourth quarter of 2017 hurt by ongoing weak retail sentiment from two consecutive mild winters. As a result, the stock lost over 3.8% on September 19th, 2017 leading to a total fall of over 30.8% in this year to date.
On the other hand, management reported that they are well positioned to enhance their sales further in 2018. For 2017, the group delivered $10.9 billion in sales, opening 215 AutoZone stores across the Americas while opened two new distribution centers. Moreover, they continued to fine-tune their inventory availability initiatives, including their multi-deliveries per week to stores while expanded the number of mega hub locations.
For the fourth quarter of 2017, net sales rose 3.3% yoy to $3.5 billion while Net income enhanced 1.7% against the same period last year to $433.9 million. Diluted earnings per share surged 6.8% to $15.27 per share as compared to $14.30 per share in the year-ago quarter.
The group opened Florida distribution center by the middle of the fiscal year as a part of their initiative. Autozone opened 84 new stores and relocated one store in the U.S., while opened 25 new stores in Mexico, and five in Brazil during the quarter. Autozone had 5,465 stores in 50 states in the U.S., the District of Columbia and Puerto Rico, 524 stores in Mexico, 26 IMC branches, and 14 stores in Brazil for a total count of 6,029.
Revenues rose 2.4% yoy to $10.9 billion during the fiscal year of 2017 with domestic same-store sales rising 0.5% for the year. Operating profit surged 1.0% on an operating margin of 19.1%. For fiscal 2017, the group’s net income enhanced 3.2% to $1.3 billion, while diluted earnings per share surged 8.3% to $44.07 as compared to $40.70 in the prior corresponding period.