Autozone Inc.

Sales Performance: AutoZone reported a 2.4% increase in total sales for Q2 2025, totaling $4 billion, with domestic same-store sales growth of 1.9%. The International same-store sales were strong, at 9.5% on a constant currency basis, despite a significant currency headwind of approximately 1,900 basis points, which resulted in an 8.2% decline when unadjusted.

Commercial Growth: The Domestic Commercial sales grew 7.3%, demonstrating strong momentum compared to 3.2% growth in Q1. This increase is attributed to efforts focused on improved availability and a faster speed of delivery. Additionally, AutoZone opened 28 net new domestic stores, highlighting a commitment to expanding the commercial segment.

Gross Margin Stability and Challenges: The overall gross margin remained stable at 53.9%. However, there was a mixed impact due to the shift in sales composition toward the Commercial business, which typically has lower margins. The company indicated potential inflationary pressures but is confident in maintaining margin structure through effective vendor negotiations.