Autozone Inc.

Q4 performance: solid top-line + strong EPS, but optics pressured by LIFO - Total sales: +$5.6% YoY to $6.6B. - EPS: +$15.1% YoY (to $56.05), helped by $96M IEEPA tariff refunds; LIFO was a drag. - EBIT: +$10.1% YoY to $1.3B (excluding LIFO comparison, EBIT growth was stronger). - Margin headwind: $15M non-cash LIFO charge in Q4 (vs $80M in prior-year Q4) → still a negative item for reported results.

Same-store trends: DIY weak, commercial strong; international modest - Company same-store sales: +1.5% (constant currency). - Domestic: +1.6% same-store - DIY: -0.6% comp (reported trend; transactions softer, trade-down/deferrals noted). - Commercial: +8.6% comp (momentum improved late quarter). - International same-store: +1.3% (constant currency); +10.7% unadjusted due to favorable FX (hundreds of bps tailwind). - Cadence: management said sales bottomed in June and improved as quarter progressed; Q1 DIY expected ~flat.

FY 2027 outlook: cautious DIY, healthier commercial, improving international; margin & LIFO still matter - Domestic FY 2027 same-store: flat to up low single digits driven by ~4% ticket growth. - Domestic commercial FY 2027 sales: high single digit to low double digit growth, with ~4% ticket growth and market share gains expected. - International FY 2027: low-to-mid single digit constant-currency comp growth, expecting improvement as macro conditions normalize (especially Mexico). - LIFO assumptions (important risk to earnings modeling): - Q1 FY 2027: expect ~$40M LIFO charge; FY 2027 total LIFO modeled ~$85M–$90M. - They also guided gross margin to be roughly flat to slightly up (excluding LIFO), with LIFO weighing on GAAP results.