By Tess Stynes
AutoZone Inc.'s (AZO) fiscal first-quarter earnings rose 7.2% on
continued sales growth and slightly stronger margins.
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 last year
embarked on a plan to enter the Brazilian market--the
fourth-largest auto market in the world.
For the period ended Nov. 23, AutoZone reported a profit of
$218.1 million, or $6.29 a share, up from $203.5 million, or $5.41
a share, a year earlier. Revenue increased 5.1% to $2.09
billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of $6.28 and revenue of $2.1 billion.
Gross margin rose to 51.9% from 51.8% on lower acquisition costs
that were mostly offset by a recent acquisition.
Domestic same-store sales improved 0.9%.
Total auto-parts sales rose 3.6% to $2.01 billion, while
domestic commercial sales climbed 14% to $348.7 million.
Shares closed Monday at $457.34 and were inactive in recent
premarket trading.
Write to Tess Stynes at tess.stynes@wsj.com
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