By Michael Calia
AutoZone Inc. said its sales rose in the November quarter thanks
in part to lower gas prices.
The results topped analysts' expectations.
A recent drop in fuel prices has boosted the automotive industry
as a whole, from car makers to auto-parts retailers. AutoZone's
shares have increased nearly 15% since mid-October, which is around
the time declines in oil prices started to accelerate.
AutoZone Chief Executive Bill Rhodes said the company believes
its improved performance in the most recent period was driven by
inventory improvements as well as lower gasoline prices and good
weather during the final weeks of the quarter.
Domestic sales for locations open at least a year rose 4.5% for
the period ended Nov. 22.
Overall, AutoZone reported a profit of $238.3 million, or $7.27
a share, up from $218.1 million, or $6.29 a share, a year
earlier.
Revenue rose 8% to $2.26 billion. The most recent period had 12
weeks, while the same period last year had 13 weeks.
Analysts had projected per-share earnings of $7.16 and revenue
of $2.21 billion, according to Thomson Reuters.
Auto-part sales improved 8% to $2.18 billion. Domestic
commercial sales rose 13% to $394 million.
AutoZone said its gross margin improved to 52.1% from 51.9% a
year earlier, reflecting higher merchandise margins and lower
shrink expense.
Write to Michael Calia at michael.calia@wsj.com
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