Core data - Q2 FY2025 (end of February 15, 2025)
- Net sales: ≈ USD 4.0 billion, an increase of approx. 2.4% compared to Q2 2024
- Gross profit margin: 53,9 %, almost unchanged compared to the previous year
- Operating result (EBIT): ≈ USD 706.8 million, decrease of around 4.9% compared to the previous year
- Net result / net profit: ≈ USD 487.9 million, decrease of around 5.3 % compared to previous year
- Earnings per share (EPS): USD 28.29, minus approx. 2.1 % yoy
Further highlights & developments
- Store expansion: A total of 45 new stores opened-28 in the USA, 13 in Mexico, 4 in Brazil-Total portfolio: 7,432 stores
Share buybacks: 100,000 shares with a value of ≈ USD 329.4 million repurchased. Remaining volume in the buyback program: ≈ USD 1.3 billion- Inventory developmentInventory increased by 10.4 % across all operations. Net inventory (after liabilities) per store improved slightly: USD -161 thousand (previous year: USD -164 thousand)
Strategic aspects & influencing factors
- Exchange rate challenges: Exchange rates had a negative impact on sales and profit
- Outlook and investments: Focus on expansion of the mega hubsimproved warehouse availability and infrastructure to strengthen the business in the long term
- SG&A costs: Increase in selling, general and administrative expenses impacted EBIT and EPS
Market reaction & analyst rating
- Share reactionDespite the EPS miss, the share price rose slightly (e.g. +0.19% in the pre-market) due to strong sales figures. Other reports showed slight losses (~1.1%) immediately after publication.
- Analyst opinionThe quarterly report was described as "mixed" - sales above expectations, profit below.
Conclusion at a glance
AutoZone $AZO (+0.06%) presented solid sales growth in Q2 FY2025 and accelerated store expansion, while earnings growth was impacted by exchange rates and higher costs. Management is focusing on expansion and infrastructure in order to achieve sustainable growth in the long term, even if margin pressure remains noticeable in the short term.