AutoZone, Inc. (NYSE: AZO) fell, after the company posted upbeat earnings for its fourth quarter, while sales missed views.
The Memphis-based firm reported net sales of $3.6 billion for its fourth quarter (16 weeks) ended August 25, 2018, an increase of 1.3% from the fourth quarter of fiscal 2017 (16 weeks). Domestic same store sales, or sales for stores open at least one year, increased 2.2% for the quarter.
Net income for the quarter decreased 7.7% over the same period last year to $400.3 million, while diluted earnings per share decreased 1.6% to $15.02 per share from $15.27 per share in the year-ago quarter.
As previously disclosed, during the quarter we terminated our qualified and non-qualified pension plans that had been frozen since fiscal 2003.
For the quarter, gross profit, as a percentage of sales, was 53.6% (versus 52.8% the same period last year).
The increase in gross margin was attributable to the impact of the sale of two business units completed during the year (+72 bps) and higher merchandise margins, partially offset by higher supply chain costs.
Operating expenses, as a percentage of sales, were 37.0% (versus 32.6% the same period last year).
Under its share repurchase program, AutoZone repurchased 974,000 shares of its common stock for $665 million during the fourth quarter, at an average price of $683 per share. For the fiscal year, the Company repurchased 2.4 million shares of its common stock for a record $1.592 billion, at an average price of $664 per share.
Shares stumbled $19.53, or 2.6%, to $727.99
