AutoZone, Inc. (NYSE:AZO) reported fourth-quarter earnings that missed analyst forecasts, as a substantial LIFO accounting charge weighed on profitability despite solid same-store sales performance. Shares of the automotive retailer fell over 4% following the report.
For the 16-week period ending August 30, 2025, AutoZone posted adjusted earnings per share of $48.71, below the analyst consensus of $50.93. Revenue reached $6.24 billion, matching expectations. Excluding the impact of the additional week in last year’s quarter, sales rose 6.9% year-on-year. Total company same-store sales increased 5.1% on a constant currency basis, while domestic same-store sales rose 4.8%.
Gross profit margin fell 98 basis points to 51.5%, mainly due to a $80 million non-cash LIFO charge, compared with no such charge in the prior year. Operating expenses as a percentage of sales rose to 32.4% from 31.6%, driven by investments supporting growth initiatives.
“I would like to thank our entire organization for delivering another strong quarter of sales growth,” said Phil Daniele, President and Chief Executive Officer. “We continue to be pleased with the results of our strategies to grow both our domestic and international DIY and Commercial sales.”
During the quarter, AutoZone opened 141 net new stores worldwide, bringing its total count to 7,657. Inventory rose 14.1% compared with the same period last year, reflecting the company’s growth initiatives.
For the full fiscal year 2025, net sales totaled $18.9 billion, up 2.4% from the prior year, while annual earnings per share declined 3.1% to $144.87 from $149.55.
The company also continued its share repurchase program, buying back 117,000 shares in Q4 at an average price of $3,821 each, for a total outlay of $446.7 million.
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