Autozone Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 3 March 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales rose 8.1 percent: Net sales were $4.3 billion for the 12 weeks to February 14, 2026, up 8.1%. Total company same store sales rose 5.2% as reported and 3.3% in constant currency. Source
• Diluted EPS fell to $27.63: Diluted EPS was $27.63 against $28.29 a year earlier. Net income was $468.9 million against $487.9 million, and operating profit fell 1.2% to $698.5 million. Source
• Domestic same store sales rose 3.4%: Domestic same store sales rose 3.4% for the 12 weeks, after 1.9% a year earlier. Management said both DIY and Commercial sales continued to perform well. Source
• International constant currency below expectations: International same store sales rose 17.1% as reported and 2.5% in constant currency, against 9.5% in constant currency a year earlier. Management said these sales were slightly below its expectations. Source
• Gross margin down 137 basis points: Gross profit was 52.5% of sales, down 137 basis points from the prior year. Source
• Inventory up 13.1 percent: Inventory rose 13.1% against the prior year. Management attributed the increase mainly to growth initiatives and inflation. Source
• Buybacks of $310.8 million: Management repurchased 85 thousand shares at an average price of $3,666, for $310.8 million in the quarter. Source
• 64 net new stores opened: The company opened 64 net new stores in the quarter: 43 in the U.S., 18 in Mexico and three in Brazil. Source

“I want to thank our AutoZoners across the company for delivering solid financial results this past quarter.”

Phil Daniele, President and Chief Executive Officer

Guidance

Results and growth drivers

• Net sales rose 8.1 percent: Net sales were $4.3 billion for the 12 weeks to February 14, 2026, up 8.1%. Total company same store sales rose 5.2% as reported and 3.3% in constant currency. Source
• Diluted EPS fell to $27.63: Diluted EPS was $27.63 against $28.29 a year earlier. Net income was $468.9 million against $487.9 million, and operating profit fell 1.2% to $698.5 million. Source
• Year-to-date EPS below prior year: For the 24 weeks, diluted EPS was $58.68 against $60.83, and basic EPS was $60.18 against $62.48. Source

Segments and regions

• Domestic same store sales rose 3.4%: Domestic same store sales rose 3.4% for the 12 weeks, after 1.9% a year earlier. Management said both DIY and Commercial sales continued to perform well. Source
• International constant currency below expectations: International same store sales rose 17.1% as reported and 2.5% in constant currency, against 9.5% in constant currency a year earlier. Management said these sales were slightly below its expectations. Source
• Share gains in Mexico and Brazil: Management said it believes market share continues to grow as AutoZone outpaces competition in Mexico and Brazil. Source

“While our international sales, in constant currency, were slightly below our expectations, we believe our market share continues to grow as we outpace our competition in both Mexico and Brazil.”

Phil Daniele, President and Chief Executive Officer

Products and customers

• Domestic commercial sales up 9.8%: Domestic commercial sales were $1,154,800 thousand in the 12 weeks, up 9.8%. Stores with commercial programs numbered 6,310, against 5,962 a year earlier. Source
• Commercial sales per program rose: Average sales per commercial program per week were $15.4, up 4.8% from $14.7 a year earlier. Source
• Sales per store and square foot rose: Sales per average store were $552 thousand for the 12 weeks, against $523 thousand. Sales per average square foot were $81, against $78. Source

Costs, margins and pricing

• Gross margin down 137 basis points: Gross profit was 52.5% of sales, down 137 basis points from the prior year. Source
• Non-cash LIFO charge hit margin: Management said the decrease in gross margin came from a 138 basis point non-cash LIFO charge. Source
• Operating expenses rose to 36.1%: Operating expenses were 36.1% of sales against 36.0% last year. Management said the increase reflected investments to support growth initiatives. Source

“As we remain focused on gaining market share across our highly fragmented industry, we remain committed to a disciplined approach of increasing earnings and cash flows to drive shareholder value,”

Phil Daniele, President and Chief Executive Officer

Demand and inventory

• Inventory up 13.1 percent: Inventory rose 13.1% against the prior year. Management attributed the increase mainly to growth initiatives and inflation. Source
• Net inventory per store negative: Net inventory per store, defined as merchandise inventories less accounts payable, was negative $105 thousand, against negative $161 thousand a year earlier. Source
• Winter storms disrupted late January: Management said winter storms caused disruptions in the last week of January and the first week of February. Source

Capital, cash and returns

• Buybacks of $310.8 million: Management repurchased 85 thousand shares at an average price of $3,666, for $310.8 million in the quarter. Source
• Remaining authorization of $1.4 billion: At the end of the quarter, $1.4 billion remained under the current share repurchase authorization. Source
• Operating cash flow lower year on year: Cash flow from operations was $342,462 thousand for the 12 weeks, against $583,749 thousand a year earlier. Capital spending was $327,530 thousand, against $292,702 thousand. Source
• Adjusted debt to EBITDAR held at 2.5: Adjusted debt to EBITDAR was 2.5 at both February 14, 2026 and February 15, 2025, on the trailing four-quarter measure. Source

Store growth and expansion

• 64 net new stores opened: The company opened 64 net new stores in the quarter: 43 in the U.S., 18 in Mexico and three in Brazil. Source
• Focus on share in fragmented industry: Management said it remains focused on gaining market share across its highly fragmented industry. Source
• Store count reached 7,774: Store count was 7,774 at February 14, 2026, including 6,709 in the U.S., 913 in Mexico and 152 in Brazil. Source

Figures management reported

Risks management discussed

• Operational: Management said winter storms caused disruptions in the last week of January and the first week of February. Source
• Demand: International sales in constant currency were described as slightly below management's expectations. Source
• Financial: Inventory rose 13.1%, which management attributed to growth initiatives and inflation. Source

Earlier plans management reported on

• On track: Management described the quarter's store openings as in line with its expectations for the full-year plan. Source
• Not stated: Management said it remains committed to a disciplined approach to increasing earnings and cash flows. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 results
• Q3 FY2025 results

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.