AutoZone 1st-Quarter Profit Up 7.2% on Continued Sales Growth

   By Tess Stynes 
 

AutoZone Inc.'s (AZO) fiscal first-quarter earnings rose 7.2% on continued sales growth and slightly stronger margins.

The largest auto-parts retailer in the U.S. has seen its performance benefit from the addition of new stores in the U.S. and Mexico and a growing commercial business. The company last year embarked on a plan to enter the Brazilian market--the fourth-largest auto market in the world.

For the period ended Nov. 23, AutoZone reported a profit of $218.1 million, or $6.29 a share, up from $203.5 million, or $5.41 a share, a year earlier. Revenue increased 5.1% to $2.09 billion.

Analysts polled by Thomson Reuters recently expected per-share earnings of $6.28 and revenue of $2.1 billion.

Gross margin rose to 51.9% from 51.8% on lower acquisition costs that were mostly offset by a recent acquisition.

Domestic same-store sales improved 0.9%.

Total auto-parts sales rose 3.6% to $2.01 billion, while domestic commercial sales climbed 14% to $348.7 million.

Shares closed Monday at $457.34 and were inactive in recent premarket trading.

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