AutoZone Earnings Miss Expectations and Gross Margins Decline. The Stock Slips. -- Barrons.com

Dow Jones
05/27

By Nate Wolf

AutoZone stock slipped in premarket trading Tuesday as the company missed earnings expectations for its fiscal third quarter.

The automotive parts retailer posted earnings of $35.36 a share on sales of $4.5 billion, while consensus estimates called for profit $37.11 a share and sales of $4.4 billion. Same-store sales rose 3.2%.

AutoZone stock slipped 0.5% to $3,808.66.

Management noted that the chain added 84 new stores in the third quarter and touted its strong distribution capabilities, which should help the company weather any economic gloom.

"While our gross margins were pressured this quarter, we believe we will drive improvement as our new distribution centers ramp up and we continue to drive higher merchandise margins," said CEO Phil Daniele in the earnings release. Gross profit as a percentage of sales was 52.7%, down 77 basis points from a year earlier.

AutoZone has zoomed ahead of its competitor Advance Auto Parts over the past five years, a rally that has continued into 2025. AutoZone shares have risen 20% so far this year and 37% over the last 12 months.

Advance Auto Parts surged last week, however, as the company reaffirmed optimistic guidance amid broad economic uncertainty. Advance Auto was up 1.4% in premarket trading.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

(END) Dow Jones Newswires

May 27, 2025 07:58 ET (11:58 GMT)

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