AutoZone (AZO) Q4 2025 Financial Results Summary

# AutoZone (AZO) Q4 2025 Financial Results Summary

AutoZone, Inc. (NYSE: AZO) released its fourth quarter 2025 financial results on September 23, 2025. Below is a summary of the key financial metrics and performance indicators for the quarter ended August 30, 2025.

## Fourth Quarter 2025 Highlights

– **Net Sales**:
– Reported net sales of **$6.2 billion**, an increase of **0.6%** compared to **$6.205 billion** for Q4 FY 2024.
– Excluding the impact of the additional week in the prior year’s quarter, adjusted sales increased **6.9%**.

– **Same-Store Sales**:
– Domestic same-store sales rose by **4.8%** for the quarter.
– International same-store sales increased by **2.1%**.
– Total company same-store sales grew by **4.5%**, and adjusting for currency fluctuations, it was a **5.1%** increase.

– **Gross Margin**:
– Gross profit was **51.5%** of sales, a decrease of **98 basis points** from the previous year, impacted by a **128 basis point** non-cash LIFO charge ($80 million) compared to none last year.

– **Operating Expenses**:
– Operating expenses as a percentage of sales increased to **32.4%**, up from **31.6%** last year.

– **Operating Profit**:
– Operating profit decreased by **7.8%** to **$1.2 billion**.

– **Net Income**:
– Quarterly net income decreased by **7.2%** to **$837 million** from **$902 million** in Q4 FY 2024.
– Diluted earnings per share (EPS) fell by **5.6%** to **$48.71** compared to **$51.58**.

## Fiscal Year 2025 Performance

– **Annual Net Sales**:
– Total net sales reached **$18.9 billion**, reflecting an increase of **2.4%** from the previous year’s **$18.5 billion**.

– **Annual Gross Margin**:
– Gross profit as a percentage of sales was **52.6%**, down from **53.1%** last year, due to a **55 basis point** non-cash LIFO impact.

– **Operating Expenses**:
– Annual operating expenses constituted **33.6%** of sales, an increase from **32.6%** last fiscal year.

– **Annual Operating Profit**:
– Operating profit decreased by **4.7%** to **$3.6 billion**.

– **Annual Net Income**:
– Fiscal year net income was **$2.5 billion**, a **6.2%** decrease from **$2.7 billion** in FY 2024.

– **EPS**:
– Diluted earnings per share for the fiscal year were **$144.87**, down by **3.1%** from **$149.55**.

## Share Repurchases and Dividends

– **Share Repurchases**:
– AutoZone repurchased **117 thousand shares** of its common stock during Q4 at an average price of **$3,821**, totaling **$446.7 million**.
– For the fiscal year, **447 thousand shares** were repurchased at an average price of **$3,425**, totaling around **$1.5 billion**.
– At the end of the fiscal year, there was **$632.3 million** remaining under the current share repurchase authorization.

– **Dividends**:
– There was no mention of a quarterly dividend being declared in the released report.

## Inventory and Store Performance

– **Inventory**:
– Inventory increased by **14.1%** year-over-year, primarily due to growth initiatives.
– On a per store basis, net inventory was negative **$131,000** compared to negative **$163,000** a year ago.

– **Store Openings**:
– In the fourth quarter, AutoZone opened **141 net new stores** globally, inclusive of **91 new stores** in the U.S., **45 in Mexico**, and **6 in Brazil**.
– For the entire fiscal year, the company opened **304 net new stores**.

## Conclusion

AutoZone’s fourth quarter results showed a mix of growth in sales and challenges in profitability metrics compared to the previous year. The increase in sales was offset by higher operating expenses and a decline in net income, reflective of broader economic pressures and a strategic investment in growth through store openings and inventory increases. The company’s commitment to shareholder value was underscored by significant share repurchase activity despite not declaring a dividend for the quarter.