AutoZone beats profit view but misses on revenue

Investing.com -- AutoZone Inc. (NYSE: AZO) reported fourth-quarter earnings that exceeded analyst expectations while revenue fell short of estimates, with shares rising 2% premarket following the results.

The automotive parts retailer posted adjusted earnings per share of $56.05 for the fourth quarter ended August 29, 2026, beating the analyst consensus of $54.30. However, net sales of $6.6 billion came in below the $6.71 billion estimate, though up 5.6% from $6.2 billion in the prior-year period. Domestic same-store sales increased 1.6% on a constant currency basis, while total company same-store sales rose 1.5%.

Gross margin expanded 182 basis points to 53.3%, driven by a 145 basis point benefit from tariff refunds and a 105 basis point non-cash LIFO impact, partially offset by higher commercial mix. Operating expenses as a percentage of sales increased to 33.4% from 32.4% last year, with deleverage primarily driven by growth initiatives. Net income rose to $931.6 million from $837.0 million in the year-ago quarter.

"In spite of a difficult selling environment the first eight weeks of our quarter, we remained committed to executing on our strategies to grow both our domestic and international businesses," said Phil Daniele, President and Chief Executive Officer. "Over the last eight weeks of the quarter our sales results strengthened, and we feel we are well positioned for sales growth in fiscal 2027."

For the full fiscal year, the company opened 374 new stores and reported annual sales of $20.3 billion, up 7.4% YoY.

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