AutoZone Registers Blockbuster First Quarter
April 20, 2015—Driven by higher demand for repairs and maintenance of cars, AutoZone's revenue for the quarter surged 7.7 percent to $2.14 billion, the company announced on Friday.
The top line was higher than the analysts’ estimate of $2.12 billion. Colder weather during the holiday season forced customers to get their vehicles repaired since it led to higher wear and tear of vehicles. This resulted in higher sales, resulting in a same store sales growth of 3.6 percent.
The company opened 37 new stores in the U.S. and five in Mexico, which added to the top line. Also, it closed one store and relocated another in the U.S.
The auto parts sales jumped 8 percent to $2.06 billion, over last year. The domestic commercial sales were 13 percent higher, clocking in at $372 million.
The gross margin of the company expanded to 52.2 percent from 52.1 percent in the previous year. This improvement was helped by an increase in the merchandise margins, partially offset by the acquisition of Interamerican Motor Corp.
The bottom line of the company was also ahead of the estimates. The earnings jumped to $6.51 per share from $5.63 per share in the previous year, an increase of 15.6 percent. Analysts were expecting the bottom line to be at $6.37 per share.
Inventory grew 11.9 percent during the quarter and stood at $631,000 per store.