This post was originally published on this site
AutoZone (NYSE:AZO) shares edged lower premarket Tuesday on the back of its latest earnings report, which topped earnings and revenue expectations.
The automotive parts and accessories retailer posted earnings of $24.64, $2.81 better than the analyst estimate of $21.83, with revenue for the quarter coming in at $3.7 billion versus the consensus estimate of $3.56B.
Net sales increased by 9.5% compared to the same period last year, while domestic same-store sales, or sales for stores open at least one year, increased by 5.3% for the quarter.
However, Autozone has experienced a rise in inventory, which increased 13.9% over the same period last year, driven by inflation and the company’s growth initiatives.
“We are proud to report solid same-store sales growth on top of last year’s 13.8%,” said Bill Rhodes, Autozone chairman, president and chief executive officer. “Once again, our AutoZoners’ efforts generated double-digit domestic Commercial growth and single-digit domestic Retail sales growth. We continue to believe the initiatives we have in place position us well for the remainder of our fiscal year.”
Despite topping expectations, Autozone shares have dipped 0.8% so far premarket.
