AutoZone’s (AZO, Financial) sales have exceeded expectations as the company has taken share from competitors throughout the pandemic with drivers taking on more vehicle maintenance themselves. The company’s new commercial business initiative has continued growing accounts, too. Although we anticipate above-average sales may slow to a more normal cadence, these results have translated into elevated cash flow, bolstering management’s ability to compound per-share value through share repurchases.
From Wallace Weitz (Trades, Portfolio)'s Hickory Fund third-quarter 2021 letter.
