Autozone (AZO) FY2025 results: revenue $18.9 billion, up 2.4% on the year

AutoZone is a retailer and distributor of automotive replacement parts and accessories in the Americas. It began operating in 1979 and at 30 August 2025 ran 6,627 stores in the United States, 883 in Mexico and 147 in Brazil. Each store carries a wide line for cars, sport utility vehicles, vans and light duty trucks: new and remanufactured hard parts, maintenance items, accessories and non-automotive products. It does not earn anything from repair or installation services. The financial year ends in late August.

Retail and commercial

At 30 August 2025 a commercial sales programme ran in 6,098 of the domestic stores and in the large majority of Mexican and Brazilian stores, delivering parts quickly and extending commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. The company also sells online at autozone.com, for store pickup or delivery to a home or business with same-day or next-day programmes in most United States markets, and commercial customers buy through autozonepro.com. It sells the ALLDATA brand of diagnostic, repair, collision and shop management software through alldata.com, and provides product information on its Duralast brand through duralastparts.com. A mobile application gives store locations, hours, product availability and the ability to buy.

What a store holds

Stores follow standard formats, with approximately 90% to 99% of each store's square footage used as selling space. Most carry approximately 20,000 to 25,000 unique stock keeping units with 40% to 50% of space given to hard parts inventory. Hub stores carry approximately 40,000 to 50,000 units and mega hub stores approximately 80,000 to 110,000, with 70% to 85% of their space used for hard parts. The hard parts area is generally fronted by counters or pods running the depth or length of the store, with maintenance items, accessories and non-automotive goods displayed in the rest.

Supply and hubs

Merchandise is selected and bought through store support centres in Memphis, Tennessee; Monterrey and Chihuahua in Mexico; Sao Paulo, Brazil; and Gurugram, India, with offices in Shanghai and Istanbul supporting global sourcing. In fiscal 2025 one class of similar products accounted for approximately 14 percent of total revenues and one vendor provided 13 percent of total purchases, with no other class or vendor above 10 percent, and the company states that alternative sources of supply exist at similar cost for most product types. Most merchandise flows through the distribution centres to stores on the company's own tractors and trailers or through third-party hauliers, with replenishment up to several times a week depending on store volume. Stores also have same-day access to the wider assortment held at 367 domestic and 53 international hub stores. Within the domestic hubs, fiscal 2025 ended with 133 mega hub stores, 24 more than a year earlier, and there are a further eight mega hubs in Mexico.

Selling and competing

The marketing approach puts customer service first, supported by an electronic parts catalogue that helps select parts and identify warranties. Digital and broadcast media drive retail traffic, while a dedicated sales force and the ProVantage loyalty programme drive commercial sales. Competition is described as intense, fought on customer service including the knowledge of staff and the speed of delivery to commercial customers, merchandise quality, selection and availability, product warranty, store layout, location and convenience, price, and the strength of the AutoZone brand. Competitors include national, regional and local auto parts chains, independent parts stores, online parts stores and marketplaces, wholesale distributors, jobbers, repair shops, car washes and auto dealers, along with discount and mass merchandise stores, hardware stores, supermarkets, drugstores, convenience stores and home stores.

People

The company employed approximately 130,000 people at 30 August 2025, approximately 60 percent full-time and 40 percent part-time. Approximately 91 percent work in stores or direct field supervision, approximately six percent in distribution centres and approximately three percent in store support and other functions, and approximately 19,000 of the total work in international operations. There have been no material labour disruptions and no collective bargaining agreements in the United States.

From AutoZone's annual report on Form 10-K for the year ended 30 August 2025. The filing

Written from the 10-K filed 27 October 2025: read the full 10-K.