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

Rhea-AI Summary

AutoZone (NYSE: AZO) reported 1Q FY2026 net sales of $4.63B, up 8.2% year-over-year, with Total Company same store sales +5.5% and Domestic same store sales +4.8% (International +11.2%; constant currency +3.7%).

Gross margin was 51.0%, down 203 bps (driven by a 212 bp non-cash LIFO impact). Operating profit was $784.2M (down 6.8%); net income was $530.8M and diluted EPS was $31.04 versus $32.52 a year ago. Inventory increased 13.9%. The company repurchased 108k shares for $431.1M and has $1.7B remaining authorization. AutoZone opened 53 net new stores, ending the quarter with 7,710 stores.

Positive

• Net sales +8.2% to $4.63B
• Total company same store sales +5.5%
• Opened 53 net new stores (ending count 7,710)
• Share repurchases $431.1M this quarter; $1.7B remaining

Negative

• Gross margin down 203 bps to 51.0% (212 bp LIFO impact)
• Adjusted after-tax ROIC 39.6%, down from 47.7%
• Inventory increased 13.9% versus prior year

Key Figures

Q1 FY2026 net sales $4,628,630,000 12 weeks ended November 22, 2025 vs. $4,279,641,000 prior year

Total company same-store sales 5.5% 12 weeks ended November 22, 2025 vs. 0.4% last year

Domestic same-store sales 4.8% 12 weeks ended November 22, 2025 vs. 0.3% last year

Q1 diluted EPS $31.04 Vs. $32.52 in prior-year quarter

Gross margin rate 51.0% Decreased 203 basis points year over year; 212 bps LIFO impact

Operating profit $784,205,000 Q1 FY2026 vs. $841,149,000 prior-year quarter

Share repurchases Q1 $431,100,000 108,000 shares at average $3,999; $1.7B authorization remaining

Inventory growth 13.9% Increase vs. same period last year, driven by growth initiatives and inflation

Market Reality Check

$3766.96 Last Close

Volume Volume 226,947 is 1.97x the 20-day average of 115,371, indicating elevated trading interest before this release. high

Technical Shares at $3,766.96 are trading below the 200-day MA of $3,826.75 and about 14.16% under the 52-week high of $4,388.11.

Peers on Argus

AZO was down 1.46% while key peers were mixed: ORLY (-0.76%), GPC (-1.06%), APTV (+0.26%), MGA (+0.8%), and MBLY (-4.11%). With no peers in the momentum scanner and no same-day peer headlines, the move looked more stock-specific than a broad sector rotation.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 21	Annual meeting notice	Neutral	-1.2%	Announcement of date and logistics for annual stockholders’ meeting and webcast.
Nov 19	Earnings date set	Neutral	+1.1%	Scheduled Q1 FY2026 earnings release and conference call details.
Oct 08	Buyback authorization	Positive	-1.5%	Board authorized additional <b>$1.5B</b> in share repurchases under ongoing program.
Sep 23	Q4 FY2025 earnings	Neutral	-0.0%	Q4 same-store sales growth with EPS decline and LIFO-driven margin pressure.
Aug 28	Leadership changes	Neutral	+0.0%	Retirements of long-tenured executives and promotions/new appointments to key roles.

Pattern Detected

Recent AZO news events mostly saw modest, directionally aligned price reactions, with a single divergence on a large buyback authorization.

Recent Company History

Over the last several months, AutoZone reported multiple operational and capital-allocation milestones. Q4 FY2025 results showed strong same-store sales and $18.9 billion in annual revenue but pressure on EPS and margins. The Board later authorized an additional $1.5 billion in buybacks, bringing cumulative repurchases to $40.7 billion since 1998. Governance updates in the FY2025 10-K and proxy highlighted CEO succession and board refreshment. Today’s Q1 FY2026 release extends this trajectory, with continued sales growth, ongoing repurchases, and store expansion building on the prior quarter’s fundamentals.

Market Pulse Summary

This announcement highlights solid revenue growth and accelerating same-store sales alongside some margin and EPS pressure. Net sales reached $4.63 billion, with total company same-store sales up 5.5% and domestic up 4.8%. Gross margin compressed to 51.0%, and diluted EPS declined to $31.04. The company continued aggressive buybacks, investing $431.1 million in Q1, and expanded to 7,710 stores. Investors may watch future quarters for trends in margins, inventory, and same-store sales.

Key Terms

lifo financial

"The decrease in gross margin was driven by a 212 basis point non-cash LIFO impact"

An accounting method that assumes the most recently acquired inventory items are sold first, so the newest costs flow into cost of goods sold while older costs stay on the balance sheet. Imagine a stack of boxes where you take from the top; when prices are rising, that top-first approach produces higher reported costs and lower reported profits, which can reduce taxes and change profit margins. Investors watch LIFO because it affects reported earnings, tax liabilities, and how comparable a company’s performance is to peers.

non-gaap financial

"These non-GAAP measures include adjustments to reflect return on invested capital"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

ebitdar financial

"adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”)"

EBITDAR stands for Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent; it measures a company's operating profit before the cost of financing, taxes, accounting write-downs, and lease or rent payments. For investors, it reveals how much cash a business generates from its core activities without the effects of capital structure or rent commitments — similar to checking how much money a store makes from selling goods before paying for the building, loan interest, or taxes.

working capital financial

"Working capital | | (1,371,420 | ) | | (1,468,020 | )"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

effective tax rate financial

"Effective tax rate over the trailing four quarters ended November 22, 2025"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

AI-generated analysis. Not financial advice.

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.

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

AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
1st Quarter, FY2026
(in thousands, except per share data)
		GAAP Results
		12 Weeks Ended				12 Weeks Ended
		November 22, 2025				November 23, 2024
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	)

AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
Adjusted Debt / EBITDAR
(in thousands, except adjusted debt to EBITDAR ratio)
			Trailing 4 Quarters
			November 22, 2025				November 23, 2024
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(1)			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(1)				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(1)			469,499				454,189
	Tax effect(2)			(188,792	)			(189,013	)
Adjusted after-tax return			$	3,219,309			$	3,366,896
Average debt(3)			$	8,868,127			$	8,849,457
Average stockholders' deficit(3)				(3,949,604	)			(4,862,353	)
Add: Rent x 6(1)				2,816,994				2,725,134
Average financing lease liabilities(3)				391,144				349,471
Invested capital			$	8,126,661			$	7,061,709
Adjusted After-Tax ROIC				39.6	%			47.7	%
(1)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
(2)Effective tax rate over the trailing four quarters ended November 22, 2025, and November 23, 2024, was 20.0% and 20.5%, respectively.
(3)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

AutoZone's 1st Quarter Highlights - Fiscal 2026
Condensed Consolidated Statements of Operations
Selected Operating Highlights
Store Count & Square Footage
		12 Weeks Ended				12 Weeks Ended
		November 22, 2025				November 23, 2024
Domestic:
	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
Mexico:
	Beginning stores		883				794
	Stores opened		12				6
	Ending Mexico stores		895				800
Brazil:
	Beginning stores		147				127
	Stores opened		2				5
	Ending Brazil stores		149				132
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(1)
	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	%)
(1)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 $7k, respectively.
		12 Weeks Ended				12 Weeks Ended
Same store sales(2)		November 22, 2025				November 23, 2024
	Domestic		4.8	%			0.3	%
	International		11.2	%			1.0	%
	Total Company		5.5	%			0.4	%
	International - Constant Currency		3.7	%			13.7	%
	Total Company - Constant Currency		4.7	%			1.8	%
(2)Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.
Inventory Statistics (Total Stores)
		as of				as of
		November 22, 2025				November 23, 2024
	Accounts payable/inventory		115.6	%			119.5	%
	($ 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		1.4	x			1.4	x

FAQ

What were AutoZone (AZO) 1Q FY2026 net sales and same store sales?

AutoZone reported $4.63B in 1Q FY2026 net sales and Total Company same store sales +5.5% (Domestic +4.8%).

How did AutoZone (AZO) 1Q FY2026 earnings per share perform?

Diluted EPS was $31.04 in 1Q FY2026 compared with $32.52 a year ago.

Why did AutoZone (AZO) gross margin decline in 1Q FY2026?

Gross margin fell to 51.0%, down 203 basis points, primarily from a 212 bp non-cash LIFO impact.

How much inventory did AutoZone (AZO) carry at the end of 1Q FY2026?

Merchandise inventories increased 13.9% year-over-year, driven by growth initiatives and inflation.

What share repurchase activity did AutoZone (AZO) report for 1Q FY2026?

AutoZone repurchased 108,000 shares for approximately $431.1M and has about $1.7B remaining under its authorization.

How many new stores did AutoZone (AZO) open in 1Q FY2026 and what is the total store count?

AutoZone opened 53 net new stores (39 U.S., 12 Mexico, 2 Brazil) and ended the quarter with 7,710 stores.