AutoZone increases 15.2% sales in the same stores

AutoZone reported Tuesday that it had net sales of $ 2.9 billion for its second quarter (12 weeks) ended February 13, 2021, an increase of 15.8% year-on-year.

In the United States, same-store sales, or sales for stores open for at least one year, climbed 15.2% during the quarter.

During the quarter ended February 13, 2021, AutoZone opened 27 new stores in the United States, seven in Mexico and one in Brazil.

As of February 13, 2021, the company had 5,951 stores in the United States, 628 stores in Mexico, and 46 stores in Brazil, for a total of 6,625 stores.

AutoZone is the leading retailer and a leading distributor of automotive parts and accessories in the Americas.

Each AutoZone store carries an extensive line of products for automobiles, sport utility vehicles, trucks, and light trucks, including new and remanufactured automotive hard parts, maintenance supplies, accessories, and non-automotive products.

Many stores also have a business sales program that provides business credit and expedited delivery of parts and other products to local, regional, and national repair shops, dealers, service stations, and public sector accounts.

AutoZone also has commercial programs in all stores in Mexico and Brazil.

Additionally, the company sells ALLDATA brand diagnostic and repair software through www.alldata.com and www.alldatadiy.com.

AutoZone

For the quarter, gross profit, as a percentage of sales, was 53.6%, a decrease of 77 basis points compared to the prior year.

The decrease in gross margin was attributed to increased supply chain costs, pricing initiatives, accelerated participation in the loyalty program, and a change in the mix.

Operating expenses, as a percentage of sales, improved to 37.0% versus 38.1% for the quarter of last year, with leverage mainly due to higher sales volumes, offset by additional benefits from emergency time off and other expenses related to the pandemic. 

Lastly, operating profit increased 18.1% to $ 481.8 million, while net income for the quarter was up 15.6% from the same period last year, to $ 345.9 million.