AutoZone, Inc. : AutoZone Net Up 6.4% on Parts Sales Growth
12/04/2012| 07:56am US/Eastern
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AutoZone Inc.'s (AZO) fiscal first-quarter earnings rose 6.4% as the company saw continued sales growth in its auto-parts and domestic commercial businesses, though same-store sales growth weakened.
Shares were down 0.8% to $374.95 in recent trading. The stock is up 16% this year.
The company also said it agreed to buy AutoAnything, an online retailer of specialized automotive products, for an undisclosed amount.
The largest auto-parts retailer in the U.S. has seen its performance benefit from the addition of new stores in the U.S. and Mexico and a growing commercial business. The company recently embarked on a plan to enter the Brazilian market--the fourth-largest auto market in the world--where it plans to open as many as 15 stores over the next few years.
In the latest quarter, domestic same-store sales edged up 0.2%, its lowest growth rate in years.
For the quarter ended Nov. 17, AutoZone reported a profit of $203.5 million, or $5.41 a share, up from $191.1 million, or $4.68 a share, a year earlier.
Revenue grew 3.5% to $1.99 billion.
Analysts polled by Thomson Reuters most recently projected earnings of $5.39 on revenue of $2.03 billion.
Gross margin rose to 51.8% from 51.1%, as lower acquisition costs and lower shrink expense pushed up merchandise margin, the company said.
Auto-parts sales rose 3.4% to $1.95 billion, while commercial sales rose 12% to $306.1 million.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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