Shares of AutoZone (AZO -1.60%) rose on Tuesday after the automotive replacement parts and accessories distributor reported stronger-than-expected profits.
AutoZone is expanding its store count at a solid clip
AutoZone's net sales grew 5.6% year over year to $6.6 billion in its fiscal 2026 fourth quarter, which ended on Aug. 29.
The auto-parts purveyor opened 175 stores during the quarter and a total of 374 over the trailing 12 months. AutoZone ended the period with 8,031 stores, including 6,863 stores in the U.S., 1,001 in Mexico, and 167 in Brazil.
Additionally, same-store sales, which measure revenue from locations open for at least a year, increased by 2.7%, or 1.5% when excluding foreign currency fluctuations.
"We grew our total store count, opening the most stores ever in a single year, improved on our assortment and in-stock positions, and continued to invest in systems to deliver even better customer service," CEO Phil Daniele said during a conference call with analysts.
Better still, tariff refunds helped to drive AutoZone's operating profit up by 10% to $1.3 billion. Its net income, in turn, increased 11% to $931.6 million. And its earnings per share, boosted by stock buybacks, jumped 15% to $56.05.
That topped Wall Street's estimates, which had called for per-share profits of $53.89, according to Yahoo! Finance.
Management sees further growth in the U.S. and internationally
Despite higher gas prices and a challenging overall economic environment, AutoZone expects more gains in the year ahead.
"Over the last eight weeks of the quarter, our sales results strengthened, and we feel we are well-positioned for sales growth in fiscal 2027," Daniele said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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