AutoZone Earnings Rise on Increased Inventory

By Angela Chen 

AutoZone Inc. said Tuesday that increased inventory and new store openings drove it to better-than-expected results in the February quarter.

In addition, Memphis-based Autozone, a retailer of car parts, has recently benefited from the decline in fuel prices that has boosted the automotive industry as a whole.

AutoZone Chief Executive Bill Rhodes said the company believes its improved performance was boosted by more product placement and its recent acquisition of Interamerican Motor Corp. Inventory was up 12% from the year before, while the company opened 37 new stores in the U.S. and five in Mexico.

At locations open at least a year, domestic sales rose 3.6% for the quarter ended Feb. 14.

Overall, AutoZone reported a profit of $212 million, or $6.51 a share, up from $193 million, or $5.63 a share, a year earlier.

Revenue rose 8% to $2.14 billion.

Analysts had projected per-share earnings of $6.38 and revenue of $2.12 billion, according to Thomson Reuters.

Auto-part sales improved 8% to $2.06 billion. Domestic commercial sales rose 13% to $372 million.

Shares of Autozone, which were inactive premarket, have risen 5% this year through Monday's close.

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