AutoZone third-quarter sales miss estimates following weak demand in March

Investing.com -- AutoZone Inc (NYSE: AZO) has reported a slowdown in comparable sales in its third quarter, as the U.S. auto parts retailer was hit by weaker-than-anticipated demand in March.

The Memphis-based firm said sales at stores that have been open for at least one year grew by 1.9% in the twelve weeks ended on May 6, down from 2.6% in the prior period last year.

Bloomberg consensus forecasts had seen the figure jumping by 4.09%.

Net sales increased by 4.9% on an annual basis to $4.09 billion, but also missed expectations of $4.12B. Shares dipped by more than 2% in premarket trading on Tuesday.

However, operating profit rose 9.3% year-on-year to $858.5 million, beating forecasts, as expenses edged down slightly.

"While weaker than expected sales for the month of March meaningfully affected our results this quarter, we are excited about our initiatives and believe we are well positioned for future growth," said chairman Bill Rhodes in a statement.

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