Autozone Inc (NYSE:AZO) stock fell 1.56% (As on September 19, 1:37:10 AM UTC-4, Source: Google Finance) after the company posted fiscal fourth quarter results that topped expectations, boosted by demand for its do-it-yourself (DIY) automotive parts. Fourth-quarter net income rose to $864 million for the quarter, compared to $810 million, a year ago. In the reported quarter, domestic commercial sales totaled $1,499 million, up from $1,442.3 million recorded in the year-ago period. Domestic same-store sales (sales at stores open at least for a year) rose by 1.7%. Gross profit increased to $2,999.7 million from the prior-year quarter’s figure of $2,755.9 million. Operating profit increased 10.8% year over year to $1,222.5 million. As of Aug 26, 2023, AutoZone had cash and cash equivalents of $277.1 million, up from $264.4 million as of Aug 27, 2022. The total debt amounted to $7,668.5 million as of Aug 26, marking an increase from $6,122.1 million as of Aug 27, 2022.

Moreover, during the quarter, AutoZone opened 53 new stores in the United States, 27 in Mexico and 17 in Brazil. It exited the quarter with 6,300 stores in the United States, 740 in Mexico and 100 in Brazil. The total store count was 7,140 as of Aug 26, 2023. Its inventory increased by 2.2% year over year in the reported quarter, led by new store growth. At quarter-end, the inventory per location was negative $201,000 compared with negative $240,000 a year ago.

AZO in the fourth quarter of FY 23 has reported the adjusted earnings per share of $46.46, beating the analysts’ estimates for the adjusted earnings per share of $45.12. The company had reported the adjusted revenue growth of 6.4 percent to $5.69 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $5.61 billion. For the quarter, gross profit, as a percentage of sales, was 52.7%, an increase of 118 basis points versus the prior year. The increase in gross margin was impacted by an 81 basis point ($45 million net) non-cash LIFO benefit, with the remaining leverage primarily from merchandise margins. Operating expenses, as a percentage of sales, were 31.2% versus last year at 30.9%.

Additionally, the company repurchased 403,000 shares of its common stock for $1 billion during the fiscal fourth quarter of 2023 at an average price of $2,502 per share. At quarter-end, it had $1.8 billion remaining under its current share repurchase authorization.