AutoZone 2nd Quarter Total Company Same Store Sales Increase 3.3%; Domestic Same Store Sales Increase 3.4%; EPS of $27.63 | AutoZone, Inc

MEMPHIS, Tenn. , March 03, 2026 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $4.3 billion for its second quarter (12 weeks) ended February 14, 2026 , an increase of 8.1% from the second quarter of fiscal 2025 (12 weeks). Same store sales, or sales for our domestic and international stores open at least one year, are as follows:       Constant Currency       Constant Currency   12 Weeks   12 Weeks*   24 Weeks   24 Weeks*                 Domestic 3.4 %   3.4 %   4.2 %   4.2 % International 17.1 %   2.5 %   14.2 %   3.1 % Total Company 5.2 %   3.3 %   5.4 %   4.0 % * Excludes impacts from fluctuations of foreign exchange rates.   For the quarter, gross profit, as a percentage of sales, was 52.5%, a decrease of 137 basis points versus the prior year. The decrease in gross margin was driven by a 138 basis point non-cash LIFO charge. Operating expenses, as a percentage of sales, were 36.1% versus last year at 36.0%. Deleverage was driven by investments to support our growth initiatives. Operating profit decreased 1.2% to $698.5 million . Net income for the quarter was $468.9 million compared to $487.9 million in the same period last year, while diluted earnings per share were $27.63 compared to last year at $28.29 . Under its share repurchase program, AutoZone repurchased 85 thousand shares of its common stock at an average price per share of $3,666 , for a total investment of $310.8 million . At the end of the second quarter, the Company had $1.4 billion remaining under its current share repurchase authorization. The Company’s inventory increased 13.1% over the same period last year, driven primarily by growth initiatives and inflation. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $105 thousand versus negative $161 thousand last year and negative $145 thousand last quarter. “I want to thank our AutoZoners across the company for delivering solid financial results this past quarter. We continue to be pleased with our strategies to grow sales. Domestically, both DIY and Commercial sales continued to perform well this past quarter in spite of winter storms causing disruptions the last week of January and the first week of February. While our international sales, in constant currency, were slightly below our expectations, we believe our market share continues to grow as we outpace our competition in both Mexico and Brazil.  We were also pleased to have opened 64 net new stores globally in the quarter, in line with our expectations to open approximately 350-360 stores for the full fiscal year. As we remain focused on gaining market share across our highly fragmented industry, we remain committed to a disciplined approach of increasing earnings and cash flows to drive shareholder value,” said Phil Daniele , President and Chief Executive Officer. During the quarter ended February 14, 2026 , AutoZone opened 43 new stores in the U.S. , 18 in Mexico and three in Brazil for a total of 64 net new stores. As of February 14, 2026 , the Company had 6,709 stores in the U.S. , 913 in Mexico and 152 in Brazil for a total store count of 7,774. AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas . Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com , and our commercial customers can make purchases through www.autozonepro.com . Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com . We also provide product information on our Duralast branded products through www.duralastparts.com . AutoZone does not derive revenue from automotive repair or installation services. AutoZone will host a conference call this morning, Tuesday, March 3, 2026 , beginning at 10:00 a.m. (ET) to discuss its second quarter results. This call is being webcast and can be accessed, along with supporting slides, at AutoZone’s website at www.autozone.com by clicking on Investor Relations. Investors may also listen to the call by dialing (888) 506-0062, passcode AUTOZONE. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 53591 through March 31, 2026 . This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to earnings before interest, taxes, depreciation, amortization, rent and share-based expense (“EBITDAR”). The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables. Certain statements herein constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These statements are based on assumptions and assessments made by our management in light of experience, historical trends, current conditions, expected future developments and other factors that we believe appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand, due to changes in fuel prices, miles driven or otherwise; energy prices; weather, including extreme temperatures and natural disasters; competition; credit market conditions; cash flows; access to financing on favorable terms; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; public health issues; inflation, including wage inflation; exchange rates; the ability to hire, train and retain qualified employees, including members of management; construction delays; failure or interruption of our information technology systems; issues relating to the confidentiality, integrity or availability of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges associated with doing business in and expanding into international markets; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; tariffs, trade policies and other geopolitical factors; new accounting standards; our ability to execute our growth initiatives; and other business interruptions. These and other risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of our Annual Report on Form 10-K for the year ended August 30, 2025 . Forward-looking statements are not guarantees of future performance and actual results may differ materially from those contemplated by such forward-looking statements. Events described above and in the “Risk Factors” section could materially and adversely affect our business. However, it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Contact Information: Financial: Brian Campbell at (901) 495-7005, brian.campbell@autozone.com Media: Jennifer Hughes at (901) 495-6022, jennifer.hughes@autozone.com                           AutoZone's 2nd Quarter Highlights - Fiscal 2026               Condensed Consolidated Statements of Operations 2nd Quarter, FY2026 (in thousands, except per share data)     GAAP Results         12 Weeks Ended   12 Weeks Ended         February 14, 2026   February 15, 2025                   Net sales $ 4,274,098     $ 3,952,012       Cost of sales   2,030,740       1,823,611       Gross profit   2,243,358       2,128,401       Operating, SG&A expenses   1,544,902       1,421,634       Operating profit (EBIT)   698,456       706,767       Interest expense, net   107,205       108,822       Income before taxes   591,251       597,945       Income tax expense   122,391       110,022       Net income $ 468,860     $ 487,923       Net income per share:             Basic $ 28.29     $ 29.06         Diluted $ 27.63     $ 28.29       Weighted average shares outstanding:             Basic   16,573       16,788         Diluted   16,969       17,245                                                 Year-To-Date 2nd Quarter, FY2026 (in thousands, except per share data)     GAAP Results         24 Weeks Ended   24 Weeks Ended         February 14, 2026   February 15, 2025                   Net sales $ 8,902,727     $ 8,231,652       Cost of sales   4,300,055       3,835,194       Gross profit   4,602,672       4,396,458       Operating, SG&A expenses   3,120,011       2,848,542       Operating profit (EBIT)   1,482,661       1,547,916       Interest expense, net   213,475       216,451       Income before taxes   1,269,186       1,331,465       Income tax expense   269,503       278,609       Net income $ 999,683     $ 1,052,856       Net income per share:             Basic $ 60.18     $ 62.48         Diluted $ 58.68     $ 60.83       Weighted average shares outstanding:             Basic   16,612       16,850         Diluted   17,036       17,307                                                                             Selected Balance Sheet Information (in thousands)     February 14, 2026   February 15, 2025   August 30, 2025               Cash and cash equivalents $ 285,492     $ 300,905     $ 271,803   Merchandise inventories   7,449,330       6,588,586       7,025,688   Current assets   8,797,362       7,802,598       8,341,379   Property and equipment, net   7,554,520       6,449,129       7,062,509   Operating lease right-of-use assets   3,300,213       3,120,826       3,194,666   Total assets   20,403,883       18,116,279       19,355,324   Accounts payable   8,262,824       7,784,717       8,025,590   Current liabilities   9,886,491       9,267,357       9,519,397   Operating lease liabilities, less current portion   3,175,110       3,007,455       3,093,936   Total Debt   8,907,052       9,052,099       8,799,775   Stockholders' deficit   (2,908,769 )     (4,457,773 )     (3,414,313 ) Working capital   (1,089,129 )     (1,464,759 )     (1,178,018 )                                                   AutoZone's 2nd Quarter Highlights - Fiscal 2026                         Condensed Consolidated Statements of Operations                         Adjusted Debt / EBITDAR (in thousands, except adjusted debt to EBITDAR ratio)       Trailing 4 Quarters                   February 14, 2026   February 15, 2025             Net income   $ 2,445,074     $ 2,606,790               Add: Interest expense     472,848       474,025                 Income tax expense     626,979       663,963               EBIT     3,544,901       3,744,778                                       Add: Depreciation and amortization     645,942       575,654                 Rent expense (1)     478,652       459,840                 Share-based expense     135,623       116,848               EBITDAR   $ 4,805,118     $ 4,897,120                                       Debt   $ 8,907,052     $ 9,052,099               Financing lease liabilities     432,330       385,899               Add: Rent x 6 (1)     2,871,912       2,759,040               Adjusted debt   $ 12,211,294     $ 12,197,038                                       Adjusted debt to EBITDAR     2.5       2.5                                       Adjusted Return on Invested Capital (ROIC) (in thousands, except ROIC)       Trailing 4 Quarters                   February 14, 2026   February 15, 2025             Net income   $ 2,445,074     $ 2,606,790               Adjustments:                       Interest expense     472,848       474,025                 Rent expense (1)     478,652       459,840                 Tax effect (2)     (194,105 )     (189,575 )             Adjusted after-tax return   $ 3,202,469     $ 3,351,080                                       Average debt (3)   $ 8,847,030     $ 8,943,172               Average stockholders' deficit (3)     (3,596,773 )     (4,711,173 )             Add: Rent x 6 (1)     2,871,912       2,759,040               Average financing lease liabilities (3)     399,840       369,622               Invested capital   $ 8,522,009     $ 7,360,661                                       Adjusted After-Tax ROIC     37.6 %     45.5 %                                     (1) The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended February 14, 2026 , and February 15, 2025 .                               Trailing 4 Quarters             (in thousands)   February 14, 2026   February 15, 2025             Total lease cost, per ASC 842   $ 630,737     $ 614,312               Less: Financing lease interest and amortization     (106,221 )     (113,698 )             Less: Variable operating lease components, related to insurance and common area maintenance     (45,864 )     (40,774 )             Rent expense   $ 478,652     $ 459,840                                       (2) Effective tax rate over the trailing four quarters ended February 14, 2026 , and February 15, 2025 , was 20.4 % and 20.3%, respectively. (3) All averages are computed based on trailing five quarter balances.                         Other Selected Financial Information (in thousands)       February 14, 2026   February 15, 2025             Cumulative share repurchases ($ since fiscal 1998)   $ 39,259,531     $ 37,820,600               Remaining share repurchase authorization ($)     1,390,469       1,329,400                                       Cumulative share repurchases (shares since fiscal 1998)     155,821       155,442                                       Shares outstanding, end of quarter     16,519       16,747                                             12 Weeks Ended   12 Weeks Ended   24 Weeks Ended   24 Weeks Ended       February 14, 2026   February 15, 2025   February 14, 2026   February 15, 2025                         Depreciation and amortization   $ 155,640     $ 137,918     $ 303,834     $ 271,091                           Cash flow from operations     342,462       583,749       1,286,633       1,395,552                           Capital spending     327,530       292,702       641,703       539,737                                                                 AutoZone's 2nd Quarter Highlights - Fiscal 2026 Condensed Consolidated Statements of Operations Selected Operating Highlights                       Store Count & Square Footage                           12 Weeks Ended     12 Weeks Ended     24 Weeks Ended   24 Weeks Ended     February 14, 2026     February 15, 2025     February 14, 2026   February 15, 2025 Domestic:                     Beginning stores   6,666         6,455         6,627       6,432     Stores opened   43         28         82       51     Stores closed   -         -         -       -     Ending domestic stores   6,709         6,483         6,709       6,483                           Relocated stores   4         1         7       3                           Stores with commercial programs   6,310         5,962         6,310       5,962                           Square footage (in thousands)   44,750         43,049         44,750       43,049                         Mexico :                     Beginning stores   895         800         883       794     Stores opened   18         13         30       19     Ending Mexico stores   913         813         913       813                         Brazil :                     Beginning stores   149         132         147       127     Stores opened   3         4         5       9     Ending Brazil stores   152         136         152       136                         Total   7,774         7,432         7,774       7,432                         Total Company stores opened, net   64         45         117       79                           Square footage (in thousands)   52,697         50,118         52,697       50,118     Square footage per store   6,779         6,744         6,779       6,744                         Sales Statistics ($ in thousands, except sales per average square foot)     12 Weeks Ended     12 Weeks Ended     Trailing 4 Quarters   Trailing 4 Quarters Total AutoZone Stores (Domestic, Mexico and Brazil ) February 14, 2026     February 15, 2025     February 14, 2026   February 15, 2025 (1)   Sales per average store $ 552       $ 523       $ 2,579     $ 2,506     Sales per average square foot $ 81       $ 78       $ 381     $ 373                         Domestic Commercial                     Total domestic commercial sales $ 1,154,800       $ 1,051,765       $ 5,478,984     $ 4,989,711     % Increase vs. LY   9.8 %       7.3 %       9.8 %     6.6 %                         Average sales per program per week $ 15.4       $ 14.7       $ 17.2     $ 16.0     % Increase vs. LY   4.8 %       4.3 %       7.5 %     0.6 %                       (1) Trailing 4 Quarters ending February 15, 2025 include an additional week of sales of approximately $359.1 million for Total AutoZone Stores with $95.7 million for Domestic Commercial. Sales per average store and sales per square foot benefited from the additional week by $49K , and $7K , respectively.                                       12 Weeks Ended     12 Weeks Ended     24 Weeks Ended   24 Weeks Ended Same store sales (2) February 14, 2026     February 15, 2025     February 14, 2026   February 15, 2025   Domestic   3.4 %       1.9 %       4.2 %     1.0 %   International   17.1 %       (8.2 %)       14.2 %     (3.9 %)   Total Company   5.2 %       0.5 %       5.4 %     0.4 %                         International - Constant Currency   2.5 %       9.5 %       3.1 %     11.5 %   Total Company - Constant Currency   3.3 %       2.9 %       4.0 %     2.4 %                       (2) Same store sales are based on sales for all stores open at least one year. Constant Currency same store sales exclude the impact of fluctuations of foreign currency exchange rates by converting both the current year and prior year international results at the prior year foreign currency exchange rate.                                                                               Inventory Statistics (Total Stores)     as of     as of               February 14, 2026     February 15, 2025             Accounts payable/inventory   110.9 %       118.2 %                                   ($ in thousands)                     Inventory $ 7,449,330       $ 6,588,586               Inventory per store   958         887               Net inventory (net of payables)   (813,494 )       (1,196,131 )             Net inventory/per store   (105 )       (161 )                                     Trailing 5 Quarters               February 14, 2026     February 15, 2025             Inventory turns   1.3   x     1.4   x                               Source: AutoZone, Inc. — Company newsroom — sourced from AutoZone. Matter furnished by the company. Not a Notice Nearby paid placement. This page reprints matter furnished by the company from its official newsroom. Notice Nearby did not write this release. Read the original: https://investors.autozone.com/news-releases/news-release-details/autozone-2nd-quarter-total-company-same-store-sales-increase-33