AutoZone (AZO) Q4 2024 earnings summary

Executive summary

• Total sales grew 5.9% for FY24, with Q4 sales up 9.0% (2.6% adjusted for extra week); EPS rose 13% for the year and 11% in Q4.

• Commercial and international segments drove growth, with international same-store sales up 9.9% (constant currency) and commercial sales up 10.9% in Q4.

• Opened 213 net new stores in FY24, including 117 in Q4, expanding in the U.S., Mexico, and Brazil.

• Domestic same-store sales grew 0.2% in Q4; discretionary categories remained pressured.

• Share repurchases reduced diluted share count by 6% year-over-year, with $3.2B repurchased in FY24.

Financial highlights

• FY24 GAAP net sales were $18.5B (+5.9% YoY); Q4 net sales were $6.21B (+9.0% YoY).

• FY24 net income was $2.7B (+5.3% YoY); Q4 net income was $902M (+4.3% YoY).

• FY24 diluted EPS was $149.55 (+13.0% YoY); Q4 EPS was $51.58 (+11.0% YoY).

• Gross margin for FY24 improved to 53.1% (GAAP), up from 52.0% last year; Q4 gross margin was 52.5%, down 21 bps due to LIFO.

• Free cash flow for the year was $1.9B; cash flow from operations was $3.0B.

Outlook and guidance

• Expect modest improvement in DIY and commercial sales in Q1 FY25, with better performance in Q2 and Q3.

• Foreign currency expected to be a headwind in FY25, potentially impacting revenue by $265M, EBIT by $90M, and EPS by $3.64 if current rates persist.

• Plan to open 20+ Mega Hubs in FY25, with most openings in the second half.

• Focus on accelerating growth in commercial and DIY, expanding hubs, and leveraging technology.

• Continued disciplined capital allocation and investment in international expansion.