Sales Performance: AutoZone reported total sales of $4.3 billion, an increase of 2.1% year-over-year, with domestic same-store sales growth of only 0.3%. International same-store sales rose by an impressive 13.7% on a constant currency basis but were negatively impacted to 1% reported due to foreign currency hurdles.
Earnings and Margins: Earnings per share (EPS) experienced a slight decline of 0.1% to $32.52 for the quarter, hindered primarily by a $0.68 drag from foreign exchange impacts. Overall, that, alongside a 53% gross margin (up 16 basis points), indicated resilience amid macroeconomic challenges. Excluding LIFO adjustments, gross margin improved by 21 basis points, driven by better merchandising margins.
Investment Plans and Expectations: AutoZone plans to continue aggressive investments in operations with over $1 billion in capex to expand store count and enhance infrastructure. The company is particularly emphasizing the opening of hub and mega-hub stores, anticipating around 100 international store openings, looking to boost operational efficiency and market share.