AutoZone Reports Solid Quarter

AutoZone, Inc. reported net sales of U.S.$1.300 billion for its second quarter (12 weeks) ended February 10, 2007, up 3.7% from fiscal second quarter 2006.
Same store sales, or sales for stores open at least one year, were down 0.3% for the quarter.
Net income for the quarter increased 6.2% over the same period last year to $103.0 million, while diluted earnings per share increased 15.5% to $1.45 per share from $1.25 per share reported in the year-ago quarter.
For the quarter, gross profit, as a percentage of sales, was 49.2% (versus 49.1% last year).
We experienced improvements in leveraging product acquisition costs offset by a shift in sales mix toward lower margin, seasonally related product.
Additionally, operating expenses, as a percentage of sales, were 34.6% (versus 34.9% last year).
The favorable variance in operating expenses was primarily due to our store reset efforts in last year’s second quarter and an ongoing focus to reduce expenditures throughout the organization.
“I’d like to congratulate our AutoZoners across the country for delivering record second quarter net income and earnings per share results,” said Bill Rhodes, President and Chief Executive Officer.
During the quarter ended February 10, 2007, AutoZone opened 34 new stores and replaced 5 stores in the U.S.
Additionally, the company re-opened 1 of the remaining 3 U.S. stores closed due to hurricane-related damage in last year’s first quarter.
As of February 10, 2007, the company had 3,847 stores in 48 states plus the District of Columbia and Puerto Rico in the U.S. and 108 stores in Mexico.