AutoZone, Inc. (NYSE: AZO) shares faded in price after the auto parts retailer reported fiscal fourth-quarter profit and sales that rose above expectations.
Figures released Tuesday morning showed net income for the quarter to Aug. 26 rose to $433.9 million, or $15.27 a share, from $426.8 million, or $14.30 a share, in the same period a year ago.
Excluding non-recurring items, such as a gain from the adoption of a new accounting standard, adjusted earnings per share came to $5.18, above the expert consensus of $5.11. Revenue increased 3.3% to $3.51 billion, beating the consensus of $3.49 billion.
Domestic same-store sales grew 1.0%, but missed expectations of a 1.6% rise, which the company attributed to continuing headwinds resulting from two consecutive mild winters. Inventory increased 6.9%, as inventory per location rose to $644,000 from $625,000.
The Company adopted a new accounting standard in August of last year related to stock option exercises. Excluding the $0.09 net benefit for the quarter from the adoption of this new standard, adjusted earnings per share were $15.18 per share.
Gross profit, as a percentage of sales, was 52.8%, or two basis points from the same period last year, due to higher supply chain costs associated with current year inventory initiatives, partially offset by higher merchandise margins.
The stock has shed 5.6% over the past three months through Monday, and 29% year to date. Shares in AZO took a dive of $24.40 mid-morning Tuesday, a slide of 4.3%, to $539.01.
