Autozone Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 9 December 2025: press release. The quarter’s numbers.

Key takeaways

Sales rose 8.2% to $4.6 billion: Net sales for the 12-week quarter ended November 22, 2025 were $4.6 billion, up 8.2%. Total company same store sales rose 5.5% as reported and 4.7% in constant currency. Source
Operating profit fell 6.8%: Operating profit was $784.2 million, against $841.1 million a year earlier. Net income was $530.8 million, against $564.9 million. Source
Domestic commercial sales up 14.5%: Domestic commercial sales were $1.29 billion, up 14.5% from $1.13 billion. Average sales per commercial program per week rose 10.1% to $17.5, against $15.9. Source
Gross margin down 203 basis points: Gross profit was 51.0% of sales, down 203 basis points. A 212 basis point non-cash LIFO impact drove the decline, partly offset by other net margin improvements. Source
Operating expenses rose to 34.0%: Operating expenses were 34.0% of sales, against 33.3% a year earlier. The company attributed the rise to investments supporting its growth initiatives. Source
Repurchased $431.1 million of shares: The company bought back 108 thousand shares at an average price of $3,999, a total investment of $431.1 million, during the quarter. Source

“Our Domestic and International businesses performed well throughout the quarter as we continue to execute on our growth initiatives.”
Phil Daniele, President and Chief Executive Officer

What changed from last quarter

New: Remaining share repurchase authorization was $1.7 billion at quarter end, against $632.3 million at fiscal year end (August 30, 2025) per the previous release. Source

Quarter results and profit

Sales rose 8.2% to $4.6 billion: Net sales for the 12-week quarter ended November 22, 2025 were $4.6 billion, up 8.2%. Total company same store sales rose 5.5% as reported and 4.7% in constant currency. Source
Operating profit fell 6.8%: Operating profit was $784.2 million, against $841.1 million a year earlier. Net income was $530.8 million, against $564.9 million. Source
Diluted EPS of $31.04: Diluted EPS was $31.04, against $32.52 last year. Diluted weighted average shares were 17,102 thousand, against 17,370 thousand. Source
Domestic same store sales up 4.8%: Domestic same store sales rose 4.8%, against 0.3% a year earlier, on stores open at least one year. Source

Segments and regions

Domestic commercial sales up 14.5%: Domestic commercial sales were $1.29 billion, up 14.5% from $1.13 billion. Average sales per commercial program per week rose 10.1% to $17.5, against $15.9. Source
International same store sales up 11.2%: International same store sales rose 11.2% as reported, against 1.0% a year earlier. In constant currency the rise was 3.7%, against 13.7%. Source
Mexico and Brazil store growth: Mexico opened 12 stores, ending at 895, and Brazil opened two, ending at 149, against six and five openings a year earlier. Source

“As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value,”
Phil Daniele, President and Chief Executive Officer

Products and commercial customers

Commercial programs reached 6,182: Stores with commercial programs numbered 6,182, against 5,935 a year earlier. Commercial sales go to local, regional and national repair garages, dealers and fleet owners. Source
Trailing commercial sales up 9.3%: Trailing four-quarter domestic commercial sales were $5.38 billion, up 9.3%. The prior-year trailing period included an extra week worth $95.7 million of domestic commercial sales. Source
Product range and ALLDATA software: Stores carry hard parts, maintenance items, accessories and non-automotive products, sold also online. ALLDATA diagnostic software is sold too; the company reports no repair or installation revenue. Source

Costs, margins and pricing

Gross margin down 203 basis points: Gross profit was 51.0% of sales, down 203 basis points. A 212 basis point non-cash LIFO impact drove the decline, partly offset by other net margin improvements. Source
Operating expenses rose to 34.0%: Operating expenses were 34.0% of sales, against 33.3% a year earlier. The company attributed the rise to investments supporting its growth initiatives. Source
Inflation cited in inventory growth: Management said merchandise inventory rose 13.9% year on year, driven primarily by growth initiatives and inflation. Source

Inventory and payables

Inventory $7.14 billion, $927 thousand a store: Merchandise inventories were $7.14 billion, up from $6.27 billion. Inventory per store was $927 thousand, against $849 thousand a year earlier. Source
Net inventory per store negative $145 thousand: Net inventory per store, merchandise inventories less accounts payable, was negative $145 thousand, against negative $166 thousand a year earlier. Source
Payables covered 115.6% of inventory: Accounts payable were 115.6% of inventory, against 119.5% a year earlier. Inventory turns were 1.4 times on a trailing five-quarter basis in both periods. Source

Capital, cash and shareholder returns

Repurchased $431.1 million of shares: The company bought back 108 thousand shares at an average price of $3,999, a total investment of $431.1 million, during the quarter. Source
Operating cash flow $944.2 million: Cash flow from operations was $944.2 million, against $811.8 million. Capital spending was $314.2 million, against $247.0 million, and depreciation and amortization was $148.2 million. Source
Leverage held at 2.5 times EBITDAR: Adjusted debt to EBITDAR was 2.5 in both periods. Adjusted after-tax ROIC was 39.6%, against 47.7%. Total debt was $8.62 billion. Source

Store base and investment

Domestic stores reached 6,666: Domestic stores reached 6,666, against 6,455 a year earlier. None closed during the quarter, and three stores were relocated. Source
Square footage per store rose: Total square footage was 52.2 million, against 49.8 million. Square footage per store was 6,773, against 6,739. Source
Sales per store and per square foot up: Sales per average store for the 12 weeks were $602 thousand, against $570 thousand. Sales per average square foot were $89, against $85. Source

Coming up, as management said on 9 December 2025

Store openings planned for rest of year: Management plans to open stores aggressively over the remainder of the fiscal year, as it continues focusing on gaining market share. Source

Figures management reported

Figure	Reported
Comparable sales, total company Source	5.5% reported; 4.7% constant currency
Comparable sales, domestic Source	4.8%
Comparable sales, international Source	11.2% reported; 3.7% constant currency
Gross margin Source	51.0% of sales, down 203 basis points
Inventory per store Source	$927 thousand
Inventory turns Source	1.4 times
Net new stores, quarter Source	53
Total stores Source	7,710
Stores closed, domestic Source	none

Risks management discussed

Financial: Management named the non-cash LIFO impact as the main reason gross margin fell this quarter. Source
Operational: Management said the rise in operating expenses as a share of sales came from investment in growth initiatives. Source

Earlier plans management reported on

Not stated: The prior release expected aggressive store openings in the new year. This release restates the plan for the rest of the year; no status is given.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

AutoZone 1st Quarter Total Company Same Store Sales Increase 4.7%; Domestic Same Store Sales Increase 4.8%; 1st Quarter EPS of $31.04

MEMPHIS, Tenn., Dec. 09, 2025 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.6 billion for its first quarter (12 weeks) ended November 22, 2025, an increase of 8.2% from the first quarter of fiscal 2025 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows:

		Constant Currency
	12 Weeks	12 Weeks*
Domestic	4.8%	4.8%
International	11.2%	3.7%
Total Company	5.5%	4.7%
* Excludes impacts from fluctuations of foreign exchange rates.

For the quarter, gross profit, as a percentage of sales, was 51.0%, a decrease of 203 basis points versus the prior year. The decrease in gross margin was driven by a 212 basis point non-cash LIFO impact, partially offset by other net margin improvements. Operating expenses, as a percentage of sales, were 34.0% versus last year at 33.3%. Deleverage was primarily driven by investments to support our growth initiatives.

Operating profit decreased 6.8% to $784.2 million. Net income for the quarter was $530.8 million compared to $564.9 million in the same period last year, while diluted earnings per share were $31.04 compared to last year at $32.52.

Under its share repurchase program, AutoZone repurchased 108 thousand shares of its common stock during the first quarter, at an average price per share of $3,999, for a total investment of $431.1 million. At the end of the first quarter, the Company had $1.7 billion remaining under its current share repurchase authorization.

The Company’s inventory increased 13.9% over the same period last year, driven primarily by growth initiatives and inflation. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $145 thousand versus negative $166 thousand last year and negative $131 thousand last quarter.

“I would like to thank our AutoZoners for delivering another quarter of strong sales growth. Our Domestic and International businesses performed well throughout the quarter as we continue to execute on our growth initiatives. We were especially pleased to open 53 net new stores globally in the quarter and we plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share. As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value,” said Phil Daniele, President and Chief Executive Officer.

During the quarter ended November 22, 2025, AutoZone opened 39 new stores in the U.S., 12 in Mexico and two in Brazil for a total of 53 net new stores. As of November 22, 2025, the Company had 6,666 stores in the U.S., 895 in Mexico and 149 in Brazil for a total store count of 7,710.

AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation services.

AutoZone will host a conference call this morning, Tuesday, December 9, 2025, beginning at 10:00 a.m. (ET) to discuss its first quarter results. This call is being web cast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com by clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 52975 through December 23, 2025.

This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.

Forward-looking statements notice

Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs, trade policies and other geopolitical factors; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 30, 2025. Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” section could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information: Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com Media: Jennifer Hughes at (901) 495-6022, jennifer.hughes@autozone.com

	GAAP Results
	12 Weeks Ended	12 Weeks Ended
	November 22, 2025	November 23, 2024
AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
1st Quarter, FY2026
(in thousands, except per share data)
Net sales	$4,628,630	$4,279,641
Cost of sales	2,269,317	2,011,584
Gross profit	2,359,313	2,268,057
Operating, SG&A expenses	1,575,108	1,426,908
Operating profit (EBIT)	784,205	841,149
Interest expense, net	106,270	107,629
Income before taxes	677,935	733,520
Income tax expense	147,112	168,587
Net income	$530,823	$564,933
Net income per share:
Basic	$31.88	$33.40
Diluted	$31.04	$32.52
Weighted average shares outstanding:
Basic	16,652	16,913
Diluted	17,102	17,370
Selected Balance Sheet Information
(in thousands)
	November 22, 2025	November 23, 2024	August 30, 2025
Cash and cash equivalents	$287,639	$304,018	$271,803
Merchandise inventories	7,144,353	6,274,070	7,025,688
Current assets	8,403,750	7,420,550	8,341,379
Property and equipment, net	7,236,243	6,281,103	7,062,509
Operating lease right-of-use assets	3,251,395	3,086,857	3,194,666
Total assets	19,665,585	17,465,762	19,355,324
Accounts payable	8,262,343	7,498,696	8,025,590
Current liabilities	9,775,170	8,888,570	9,519,397
Operating lease liabilities, less current portion	3,139,227	2,982,977	3,093,936
Total Debt	8,623,112	9,012,539	8,799,775
Stockholders' deficit	(3,228,607)	(4,672,921)	(3,414,313)
Working capital	(1,371,420)	(1,468,020)	(1,178,018)

	Trailing 4 Quarters
	November 22, 2025	November 23, 2024
AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
Adjusted Debt / EBITDAR
(in thousands, except adjusted debt to EBITDAR ratio)
Net income	$2,464,137	$2,633,897
Add: Interest expense	474,465	467,823
Income tax expense	614,610	679,533
EBIT	3,553,212	3,781,253
Add: Depreciation and amortization	628,220	562,704
Rent expense	469,499	454,189
Share-based expense	129,327	109,450
EBITDAR	$4,780,258	$4,907,596
Debt	$8,623,112	$9,012,539
Financing lease liabilities	373,545	388,847
Add: Rent x 6	2,816,994	2,725,134
Adjusted debt	$11,813,651	$12,126,520
Adjusted debt to EBITDAR	2.5	2.5
Adjusted Return on Invested Capital (ROIC)
(in thousands, except ROIC)
	Trailing 4 Quarters
	November 22, 2025	November 23, 2024
Net income	$2,464,137	$2,633,897
Adjustments:
Interest expense	474,465	467,823
Rent expense	469,499	454,189
Tax effect	(188,792)	(189,013)
Adjusted after-tax return	$3,219,309	$3,366,896
Average debt	$8,868,127	$8,849,457
Average stockholders' deficit	(3,949,604)	(4,862,353)
Add: Rent x 6	2,816,994	2,725,134
Average financing lease liabilities	391,144	349,471
Invested capital	$8,126,661	$7,061,709
Adjusted After-Tax ROIC	39.6%	47.7%
The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended November 22, 2025, and November 23, 2024.
	Trailing 4 Quarters
(in thousands)	November 22, 2025	November 23, 2024
Total lease cost, per ASC 842	$635,731	$602,034
Less: Financing lease interest and amortization	(121,487)	(108,665)
Less: Variable operating lease components, related to insurance and common area maintenance	(44,745)	(39,180)
Rent expense	$469,499	$454,189
Effective tax rate over the trailing four quarters ended November 22, 2025, and November 23, 2024, was 20.0% and 20.5%, respectively.
All averages are computed based on trailing five quarter balances.
Other Selected Financial Information
(in thousands)
	November 22, 2025	November 23, 2024
Cumulative share repurchases ($ since fiscal 1998)	$38,948,745	$37,491,245
Remaining share repurchase authorization ($)	1,701,255	1,658,755
Cumulative share repurchases (shares since fiscal 1998)	155,736	155,341
Shares outstanding, end of quarter	16,585	16,810
	12 Weeks Ended	12 Weeks Ended
	November 22, 2025	November 23, 2024
Depreciation and amortization	$148,194	$133,173
Cash flow from operations	944,171	811,803
Capital spending	314,173	247,035

	12 Weeks Ended	12 Weeks Ended
	November 22, 2025	November 23, 2024
Beginning stores	6,627	6,432
Stores opened	39	23
Stores closed	-	-
Ending domestic stores	6,666	6,455
Relocated stores	3	2
Stores with commercial programs	6,182	5,935
Square footage (in thousands)	44,433	42,844
Beginning stores	883	794
Stores opened	12	6
Ending Mexico stores	895	800
Beginning stores	147	127
Stores opened	2	5
Ending Brazil stores	149	132
AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
Selected Operating Highlights
Store Count & Square Footage
Domestic:
Mexico:
Brazil:
Total	7,710	7,387
Total Company stores opened, net	53	34
Square footage (in thousands)	52,219	49,781
Square footage per store	6,773	6,739
Sales Statistics
($ in thousands, except sales per average square foot)
	12 Weeks Ended	12 Weeks Ended	Trailing 4 Quarters	Trailing 4 Quarters
Total AutoZone Stores (Domestic, Mexico and Brazil)	November 22, 2025	November 23, 2024	November 22, 2025	November 23, 2024
Sales per average store	$602	$570	$2,555	$2,506
Sales per average square foot	$89	$85	$378	$373
Domestic Commercial
Total domestic commercial sales	$1,291,893	$1,128,237	$5,375,950	$4,918,080
% Increase vs. LY	14.5%	3.2%	9.3%	5.6%
Average sales per program per week	$17.5	$15.9	$17.1	$15.8
% Increase vs. LY	10.1%	0.0%	8.2%	(0.6%)
Trailing 4 Quarters ending November 23, 2024 include an additional week of sales of approximately $359.1 million for Total AutoZone Stores with $95.7 million for Domestic Commercial. Sales per average store and sales per square foot benefited from the additional week by $49k, and $7k, respectively.
	12 Weeks Ended	12 Weeks Ended
Same store sales	November 22, 2025	November 23, 2024
Domestic	4.8%	0.3%
International	11.2%	1.0%
Total Company	5.5%	0.4%
International - Constant Currency	3.7%	13.7%
Total Company - Constant Currency	4.7%	1.8%
Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.
Inventory Statistics (Total Stores)
	as of	as of
	November 22, 2025	November 23, 2024
Accounts payable/inventory	115.6%	119.5%
($ in thousands)
Inventory	$7,144,353	$6,274,070
Inventory per store	927	849
Net inventory (net of payables)	(1,117,990)	(1,224,626)
Net inventory/per store	(145)	(166)
	Trailing 5 Quarters
	November 22, 2025	November 23, 2024
Inventory turns	1.4x	1.4x