AutoZone first-quarter profit rises 10% on strong parts demand
Reuters
Published Dec 05, 2023 07:34AM ET
(Reuters) - Automotive parts retailer AutoZone (NYSE:AZO) on Tuesday posted a better-than-expected 10% rise in quarterly profit as demand for its Do-It-Yourself (DIY) kits benefited from more people maintaining their existing vehicles instead of buying new ones.
The new-car market is on a nascent recovery path after months of supply chain issues and lackluster consumer spending prompted by high interest rates and inflation.
"The record-high average U.S. vehicle age (now 12.5 years) should continue to act as a strong growth tailwind (for AutoZone)," CFRA analyst Garrett Nelson said on Monday.
The company, which competes with Advance Auto Parts (NYSE:AAP) and O'Reilly (NASDAQ:ORLY) Automotive, said quarterly net sales rose about 5.15% to $4.19 billion.
Domestic same-store sales in the quarter ended Nov. 18 remained constant at 1.2%.
First-quarter net income rose to $593 million, or $32.55 per share, compared with $539 million, or $27.45 per share, a year ago. Analysts expected $31.49 per share, according to LSEG data.
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Written By: Reuters
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