AutoZone, Inc. (NYSE: AZO) found its shares dwindleTuesday, on reporting net sales of $2.5 billion for its second quarter ended February 15, 2020, an increase of 2.6% from the second quarter of fiscal 2019.
Domestic same store sales, or sales for stores open at least one year, decreased 0.8% for the quarter.
The Memphis-based AutoZone also said operating profit increased 2.0% to $407.9 million. Net income for the quarter increased 1.6% over the same period last year to $299.3 million, while diluted earnings per share increased 7.8% to $12.39 per share from $11.49 per share in the year-ago quarter.
For the quarter, gross profit, as a percentage of sales, increased to 54.3% (versus 54.1% the same period last year) primarily driven by supply chain leverage. Operating expenses, as a percentage of sales, were 38.1% (versus 37.7% the same period last year), with de-leverage primarily driven by domestic store payroll.
CEO Bill Rhodes enthused, "Our sales performance in our fiscal second quarter did not meet our plans or expectations. We had particularly challenging sales in specific weather sensitive categories and geographies, indicating to us that the mild winter was a considerable headwind to our and our industry’s sales performance.
"In light of the challenging sales environment, our team again delivered solid earnings, growing EBIT by 2.0% and EPS by 7.8%. As we enter our seasonally strong second half of the year, we are optimistic about our prospects for the balance of the year."
Shares slipped $12.20, or 1.2%, to $1,035.93
