AutoZone Says Cool Weather Slowed 3Q Sales Growth
AutoZone Q3 Results: Cool Weather Slows Sales Growth
AutoZone reported higher fiscal third-quarter sales boosted by domestic growth, but said weather slowed momentum as the quarter progressed.
CEO Phil Daniele attributed the slowdown to unseasonably cool weather impacting heat-related categories such as air conditioning, starting and charging, which normally ramp up with summer heat. Shares fell 12% to $3,008.19, and competitors O'Reilly Automotive and Advance Auto Parts also saw modest declines.
Daniele expects these categories to rebound given a likely hotter-than-normal summer. International business showed weakness due to slowing economies in Mexico and Brazil, but market share continues to grow.
On a constant-currency basis, same-store sales grew 3.9% (domestic 4.1%, international 1.6%). DIY traffic fell 3.6% but average ticket rose 5.6% due to inflation. The company expects inflation to continue but become more muted as tariff-driven price hikes from last year are lapped.
Net income was $641.5 million ($38.07 per share) versus $608.4 million ($35.36 per share) a year ago, beating analyst expectations of $36.22 per share. Sales rose to $4.84 billion from $4.46 billion.
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