AutoZone reported fourth quarter 2026 net sales of $6.6 billion, missing analyst estimates, while diluted EPS of $56.05 exceeded expectations. Performance was hampered by a difficult selling environment in the first half of the quarter, though management noted strengthening sales trends in the final eight weeks of the period.
Key Highlights
- Domestic same-store sales increased 1.6%, failing to meet the consensus estimate of 3.7%.
- Gross margin expanded by 182 basis points to 53.3%, primarily driven by 145 basis points from tariff refunds and a 105 basis point non-cash LIFO benefit.
- Operating profit rose 10.1% to $1.3 billion, even as operating expenses as a percentage of sales increased to 33.4% due to growth initiatives.