AutoZone, the auto parts retailer, beat expectations with a notable 10% increase in its quarterly earnings. The rise is attributed to growing demand for its DIY kits, driven by a trend of people keeping their existing vehicles rather than buying new ones. The current recovery in the new car market, following supply chain challenges and subdued consumer spending, further contributes to AutoZone’s success.
CFRA analyst Garrett Nelson highlights the impact of the record average age of vehicles in the U.S., currently 12.5 years, serving as a strong growth driver for AutoZone. Competing with industry players such as Advance Auto Parts and O’Reilly Automotive, AutoZone reports a substantial 5.15% increase in quarterly net sales, reaching $4.19 billion.
Despite challenges in the automotive market, domestic same-store sales remained steady at 1.2% during the quarter ending Nov. 18. First quarter net income saw a significant increase to $593 million, which translates to $32.55 per share, compared to $539 million or $27.45 per share a year earlier. Analysts’ expectations were exceeded, with earnings per share of $31.49, according to LSEG data.
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