Retailer of automotive replacement parts, AutoZone (AZO), Tuesday reported a 10% growth in second-quarter earnings to $11.49 per share, helped by tax benefits. Revenue for the quarter, meanwhile, increased 1.6% to $2.5 billion.
The results came in above the expectations set by Wall Street. Analysts, on an average, had projected earnings of earnings of $9.97 per share on revenues of $2.45 billion.
Domestic same-store sales improved by 2.6% during the quarter.
CEO Bill Rhodes said, “Our industry fundamentals remain strong, and we continue to be excited about the initiatives we have underway to further enhance our inventory availability, to continue to accelerate Commercial and to meet our customers how, when and where they want to be met with our omnichannel efforts.”
The company’s inventory increased 5.4% over the same period last year, driven by new stores and increased product placement, partially offset by the sale of two businesses completed in the prior year.
Gross profit, as a percentage of sales, was 54.1%, higher than 52.9% for the same period last year, primarily due to the sale of two businesses last year.
AZO shares have been on a gaining streak since the beginning of the year and have increased about 6% so far, outperforming both the sector and the broader market. AZO is currently trading near an all-time high.
Last week, rival firm Advance Auto Parts (AAP) had reported a 52% growth in its fourth-quarter earnings to $1.17 per share, supported by a further strong increase in comparable sales.