AutoZone reports below-consensus Q1 earnings, slower same-store sales growth

Investing.com -- AutoZone (NYSE: AZO) reported first-quarter earnings that missed market expectations. The company’s shares traded marginally lower in premarket trading Tuesday.

AutoZone posted earnings per share (EPS) of $32.52, missing the $33.60 projected by analysts. Revenue for the quarter came in at $4.3 billion, in line with consensus estimates.

Comparable sales increased by 0.4%, trailing the prior year’s growth of 3.4% and slightly missing the estimate of 0.45%.

Domestic comparable sales rose by 0.3%, down from last year’s 1.2% growth and below the forecast of 0.74%.

International comparable sales grew by 1%, significantly slower than the 25.1% growth recorded a year ago and marginally underperforming the 1.02% estimate.

“I would like to thank all our AutoZoners across the globe for their efforts in helping us deliver solid first quarter results,” said Phil Daniele, President and CEO of AutoZone.

“We feel we are well positioned for growth heading into the remainder of the fiscal year, as we believe the initiatives we have in place to improve customer service and grow market share are on track.”

Operating profit stood at $841.1 million in the first quarter, a 0.9% decline year-over-year and below the $848.3 million analyst projection.

Meanwhile, gross margin improved slightly to 53%, surpassing last year’s 52.8% and in line with forecasts.

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