AutoZone Inc. (NYSE: AZO), an automotive parts store and repair service provider, improved like-for-like sales in the third quarter of fiscal 2022. Despite the fact that the firm is not immune to negative macroeconomic variables, the management opted to raise the year-end prediction.
AutoZone Inc. (AZO)’s sales increased 6% year over year to $3.97 billion in the third quarter, attributable to higher revenues in both the commercial and retail divisions. In addition, the firm had a solid year-over-year increase in like-for-like sales of more than 2.5 percent. The increasing quantity of used automobiles is the key engine of AutoZone’s long-term growth.
Such vehicles, on the whole, need more regular maintenance and component replacement. The need for spare parts and technical services will continue to expand in the United States, despite the high demand for old automobiles and customers’ reluctance to invest in new vehicles in the present inflationary environment. This provides a good environment for AutoZone Inc. (AZO), which can provide used car owners with servicing and spare parts.
Supply chain disruption and inflation have driven up transportation and personnel expenses, putting pressure on AZO. Adjusted operating income and operating profit margins both fell modestly year over year. However, the store still has a substantial net profit, which was $593 million at the end of the quarter. In comparison, the profit was $596 million a year ago.
Last week, AutoZone Inc. (AZO) raised its prediction for the following fiscal quarter, causing prices to surge. The shares of AZO ended at $2,055.99 on May 27.
AutoZone Inc. (NYSE: AZO) shares are down -1.96 percent year to date (YTD) but are up 1.30% or $26.43 in the most recent trading session. However, the stock’s 12-month performance is still over 46.12% higher. The stock has gained 13.30 percent in the last six months and 10.30 percent in the last three months. When we look at the shorter time frames, we can see that the week performance is up 16.01% and the month performance is up 2.03 percent.
