Automotive parts retailer AutoZone (AZO) has reported better-than-expected financial results as demand for its products remains strong.
The company announced earnings per share (EPS) $32.55 U.S., up nearly 20% from $27.45 U.S. per share a year earlier, and above analyst forecasts for $31.57 U.S.
Revenue in what was AutoZone’s fiscal first quarter totaled $4.19 billion U.S., an increase of 5% from $3.99 billion U.S. a year ago, and in line with Wall Street estimates.
The company said its same-store sales were up 1.2% domestically and more than 25% internationally during the quarter.
Gross margins at AutoZone expanded to 52.8% due to improving supply chain costs and higher merchandise margins. Inventory rose 3% from a year ago due to more new stores.
The company said demand for its Do-It-Yourself (DIY) kits remains strong as consumers opt to maintain their existing vehicles instead of buying new ones amid high interest rates on vehicle loans.
The stock of AutoZone has gained 10% this year to trade at $2,664.11 U.S. per share.
