AutoZone Increases Sales But Misses Expectations

   By Aisha Al-Muslim 
 

AutoZone Inc. reported its sales rose in the latest quarter as the distributor of automotive replacement parts and accessories sold more goods this summer in the Rust Belt and increased its commercial sales.

The Memphis, Tenn.-based company reported net sales in the fourth quarter jumped 1.3% to $3.56 billion, but slightly missed the FactSet consensus forecast of $3.6 billion. Domestic same-store sales grew 2.2%, missing the FactSet estimate of a 2.5% increase.

AutoZone recorded a profit of $400.3 million, or $15.02 a share, down from $433.9 million, or $15.27 a share, a year earlier. Adjusted earnings were $18.54 a share, beating the $17.92 a share analysts polled by Thomson Reuters were looking for.

The company adjusted its earnings for charges related to the termination of its pension plans of $93.7 million, net of tax benefit, during the quarter. The pension plans had been frozen since fiscal 2003.

The stock fell 5.3% to $708 a share in premarket trading Tuesday. Shares are up about 33% in the last year.

Separately, AutoZone announced a new next-day home delivery program of up to 100,000 different parts and accessories. For most customers, an order can be placed as late as 10 p.m. for next-day delivery, the company said. The program is available in 83 markets as the company looks to grow its online purchases segment.

AutoZone now has more than 6,200 stores in the U.S., Mexico and Brazil.

Write to Aisha Al-Muslim at [e-mail]

(END) Dow Jones Newswires

September 18, 2018 09:35 ET (13:35 GMT)

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