AutoZone, Inc.

Q4 & FY 2026 headline performance (mix of upside + noise from LIFO/tariffs) - Total sales (Q4): +5.6% YoY to $6.6B; EPS: +15.1%; EBIT: +10.1%. - Same-store sales: Total +1.5% constant-currency (domestic +1.6%, international +1.3%). - Key drivers/offsets: Gross margin & EPS were affected by a $15M non-cash LIFO charge (vs $80M a year ago) and $96M IEEPA tariff refunds (benefit of +$4.43/share). - Total store growth: 175 net new stores in Q4; 374 new stores in FY 2026 (record) vs 304 in FY 2025.

Domestic DIY vs Commercial: DIY lagged early; Commercial momentum strongest (and the big “bad”) - Domestic retail (Q4): DIY -0.6% comp (retail DIY “negative for first three months,” essentially flat by August). - Weather/macro impact: Mild temperatures in the Southeast/South Central earlier in the quarter reduced foot traffic; higher inflation (oil/gas) dampened traffic; trade-down/deferrals cited among more pressured DIY customers. - Commercial (Q4): +8.6% comp; domestic DIFM/DIFM sales up just under 9% and improved over the quarter (last month well over 9%). - Inflation/ticket: DIY ticket inflation ~+5% (offset by traffic declines). Management expects Q1 FY 2027 ticket around +5%.

FY 2027 outlook (investors’ key takeaway: retail flat-ish, commercial strong, international improving) - Domestic same-store sales: Flat to up low single digits; expected ~4% ticket growth. - Domestic commercial sales: High single to low double digits growth (with ~4% ticket growth) and continued market-share gains. - International comps (constant currency): Low to mid-single digit in FY 2027; confidence based on improved trends seen in late Q4 (Mexico softness expected to stabilize). - Store openings guidance: FY 2027 ~400 new stores (Q1: ~65 vs 53 last year); CapEx ~$1.65B expected (similar magnitude to FY 2026).