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AutoZone (NYSE:AZO) shares tumbled Tuesday in reaction to its fiscal first-quarter earnings report, although it topped consensus expectations.
The automotive retailer reported earnings of $27.45 per share on revenue of $4 billion, better than analyst expectations for earnings per share of $25.26 on revenue of $3.86B.
Autozone shares are down more than 3% at the time of writing.
Meanwhile, same-store sales, or sales for stores open at least one year, increased 5.6% for the quarter, although AutoZone’s inventory increased 17.6% compared to last year, driven by inflation and the company’s growth initiatives.
“While our Commercial sales growth accelerated 15%, our retail sales also grew impressively from a year ago. We continue to believe our initiatives to grow our business position us well for the remainder of our fiscal year,” commented Bill Rhodes, Chairman, President and Chief Executive Officer.
Despite the company’s share price decline on Tuesday, its stock has had a positive year, climbing over 16%. It hit an intraday high of over $2,600 per share last week.
