AutoZone Authorizes Additional Stock Repurchase

Rhea-AI Summary

AutoZone has announced that its Board of Directors has authorized an additional $1.5 billion for the company's ongoing share repurchase program. This increases the total authorized repurchases to $39.2 billion since the program started in 1998. CFO Jamere Jackson emphasized that the company’s strong free cash flow and investment grade credit ratings allow for this increase while maintaining financial discipline. The company is committed to a disciplined capital allocation policy to drive growth and maintain liquidity.

Positive

• Additional $1.5 billion authorized for share repurchase.
• Total authorized share repurchases now $39.2 billion since 1998.
• Strong free cash flow supports the repurchase program.
• Maintains investment grade credit ratings.

Negative

• None.

MEMPHIS, Tenn., June 19, 2024 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), today, announced its Board of Directors authorized the repurchase of an additional $1.5 billion of the Company’s common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone’s Board of Directors has authorized $39.2 billion in share repurchases.

“AutoZone’s continuing ability to generate strong free cash flow allows us to increase our cumulative share authorization while maintaining our investment grade credit ratings,” said Jamere Jackson, Chief Financial Officer. “We remain committed to our disciplined capital allocation policy to drive growth while maintaining adequate liquidity.”

About AutoZone:

As of May 4, 2024, the Company had 6,364 stores in the U.S., 763 in Mexico and 109 in Brazil for a total store count of 7,236.

AutoZone is the 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.

Contact Information:

Financial: Brian Campbell, 901-495-7005, brian.campbell@autozone.com

Media: David McKinney, 901-495-7951, david.mckinney@autozone.com

FAQ

What did AutoZone announce on June 19, 2024?

AutoZone announced the authorization of an additional $1.5 billion for its ongoing share repurchase program.

How much has AutoZone authorized for share repurchases since 1998?

AutoZone has authorized $39.2 billion for share repurchases since 1998.

What enables AutoZone to increase its share repurchase authorization?

AutoZone's strong free cash flow and investment grade credit ratings enable the increase in share repurchase authorization.

What is the stock symbol for AutoZone?

The stock symbol for AutoZone is AZO.