AutoZone, Inc. (NYSE:AZO) shares popped on the release Tuesday of first-quarter sales and bottom-line figures.
The Memphis-based AutoZone reported net sales of $2.8 billion for its first quarter (12 weeks) ended November 23, 2019, an increase of 5.7% from the first quarter of fiscal 2019 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 3.4% for the quarter.
Operating profit increased 2.5% to $500.0 million. Net income for the quarter decreased 0.3% over the same period last year to $350.3 million, while diluted earnings per share increased 6.2% to $14.30 per share from $13.47 per share in the year-ago quarter.
The decrease in net income was driven by an increased effective tax rate resulting from a reduced benefit from stock options exercised during the quarter. The benefit from stock options increased EPS by $0.06 versus $0.43 last year.
For the quarter, gross profit, as a percentage of sales, was relatively flat to last year at 53.7%. Operating expenses, as a percentage of sales, were 35.8% (versus 35.2% the same period last year), with deleverage primarily driven by domestic store payroll and benefits.
Under its share repurchase program, AutoZone repurchased 403,000 shares of its common stock for $450.0 million during the first quarter, at an average price of $1,116 per share. At the end of the first quarter, the Company had $1.3 billion remaining under its current share repurchase authorization.
Shares jumped $63.67, or 5.5%, to $1,232.67
