AutoZone, Inc. (NYSE:AZO) stock fell 3.45% (As on Dec 8, 10:51:18 AM UTC-4, Source: Google Finance) though the company beaten the market’s expectations for the first quarter of FY 22. Net income increased 25.5% year over year to $555.2 million. For the first quarter, domestic commercial sales totaled $899.9 million, up from $695.3 million recorded in the year-ago period. In addition, domestic same-store sales (sales at stores open at least for a year) rose 13.6%, handily beating the Zacks Consensus Estimate of 3.9%. Gross profit increased to $1,925.1 million from the prior-year quarter’s $1,675.6 million. Operating profit moved up to $754.5 million from $615.2 million registered in the year-earlier period. During the fiscal first quarter, AutoZone opened 15 stores in the United States, two in Mexico and one in Brazil. It exited the quarter with 6,066 stores in the United States, 666 in Mexico and 53 in Brazil. The total store count was 6,785 as of Nov 20, 2021. AutoZone’s inventory improved 3% year over year for the reported quarter on store openings. At quarter-end, inventory per location was $703,000, up from the year-ago figure of $702,000. AutoZone had cash and cash equivalents of $961.1 million as of Nov 20, 2021, down from $1,664 million on Nov 21, 2020. Total debt amounted to $5,271.3 million as of Nov 20, 2021, marking a decrease from $5,514.8 million on Nov 21, 2020.

AZO in the first quarter of FY 22 has reported the adjusted earnings per share of $25.69, beating the analysts’ estimates for the adjusted earnings per share of $20.83, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 16.3 percent to $3.67 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $3.36 billion.

Additionally, in the fiscal first quarter, the company repurchased 515,000 shares for $900 million at an average price of $1,749 per share. The company has shares worth around $1 billion remaining in the current repurchase authorization.

Meanwhile, for the remainder of fiscal 2022, the company will be announcing significant expansions to the supply chain to fuel the growth of the domestic and Mexico businesses. The company is also targeting to open 16 more new domestic mega hubs in the U.S. that will enhance the availability and support growth in the retail and commercial businesses. For the fiscal year, the company plans to open more than 200 new stores throughout the Americas with notable acceleration in the Brazil business.