By Angela Chen
AutoZone Inc. said Tuesday that increased inventory and new
store openings drove it to better-than-expected results in the
February quarter.
In addition, Memphis-based Autozone, a retailer of car parts,
has recently benefited from the decline in fuel prices that has
boosted the automotive industry as a whole.
AutoZone Chief Executive Bill Rhodes said the company believes
its improved performance was boosted by more product placement and
its recent acquisition of Interamerican Motor Corp. Inventory was
up 12% from the year before, while the company opened 37 new stores
in the U.S. and five in Mexico.
At locations open at least a year, domestic sales rose 3.6% for
the quarter ended Feb. 14.
Overall, AutoZone reported a profit of $212 million, or $6.51 a
share, up from $193 million, or $5.63 a share, a year earlier.
Revenue rose 8% to $2.14 billion.
Analysts had projected per-share earnings of $6.38 and revenue
of $2.12 billion, according to Thomson Reuters.
Auto-part sales improved 8% to $2.06 billion. Domestic
commercial sales rose 13% to $372 million.
Shares of Autozone, which were inactive premarket, have risen 5%
this year through Monday's close.
Write to Angela Chen at angela.chen@dowjones.com
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