Q2 2026 Autozone Inc Earnings Call Transcript
Key Points
- AutoZone Inc (AZO) reported a total sales growth of 8.1% for the second quarter, driven by strong domestic and international performance.
- The company opened 64 new stores globally in the quarter, indicating a robust expansion strategy.
- Domestic commercial sales grew by 9.8%, showcasing strong performance in the commercial segment.
- International same-store sales increased by 2.5% on a constant currency basis, with a significant positive impact from exchange rates.
- AutoZone Inc (AZO) continues to invest in growth initiatives, including a $1.6 billion CapEx investment to drive strategic priorities such as store growth and supply chain improvements.
- Earnings per share (EPS) decreased by 2.3% due to a non-cash $59 million LIFO charge, impacting margins and profitability.
- The company's gross margin was down 137 basis points year-over-year, primarily due to the LIFO charge and commercial mix pressure.
- DIY traffic count declined by 3.6%, with a notable decrease in the middle four-week segment of the quarter.
- Operating expenses increased by 8.7% compared to the previous year, driven by investments to support growth initiatives.
- The commercial sales increase was below expectations due to winter storms impacting the last four weeks of the quarter, resulting in lower sales growth during that period.
Greetings and welcome to AutoZone's second-quarter 2026 earnings release conference call. (Operator Instructions) Please note this conference is being recorded. At this time, we would like to play the company's Safe Harbor statement.
Before we begin, please note that today's call includes forward-looking statements that are subject to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. Please refer to this morning's press release and the company's most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission for discussion of important risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date made, and the company undertakes no obligation to update such statements.
Today's call will also include certain non-GAAP measures. A reconciliation of GAAP to non-GAAP financial measures can be found in our press release.
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