AutoZone Inc. (NYSE:AZO) traces its roots back to 1979 when Joseph R. Hyde III established a store, named Auto Shack, to sell affordable auto parts to vehicle owners. Auto Shack kept operating as a division of Malone & Hyde Inc. for many years. In 1987, Hyde sold all other businesses except its rapidly growing Auto Shack unit. In the same year, the company was renamed AutoZone. Aggressive expansion and a large distribution network helped it to become a leading supplier of automotive parts and accessories in the U.S.
Memphis, Tennessee-based AutoZone on Tuesday announced better-than-expected results for the second quarter. It reported earnings of $14.93 per share for the three months ended February 13, up 20.5 percent from $12.39 per share in the comparable period of 2020. Analysts on average were looking for earnings of $12.90 per share. Revenue rose 15.8 percent on a year-over-year basis to $2.911, easily beating the consensus forecast of $2.759 billion.
Commenting on the quarter, CEO Bill Rhodes said, “This quarter, we were again able to deliver exceptionally strong same store sales and earnings growth, and many performance metrics remained at historically high levels. While our strong (DIY) sales have been aided by government stimulus and changes to consumer behavior as a result of the pandemic, our growth initiatives continue to deliver strong share gains with both DIY and Commercial customers. In Commercial, our business was up 15% this quarter as the investments we are making in pricing, service and assortment are strengthening our competitive position in this large, fragmented market.”
The company opened 35 new stores during the quarter, bringing the overall count to 6,625. Moreover, it repurchased $900 million worth of its shares in the quarter at an average price of $1,197 for each share.
AutoZone shares marginally moved up on Tuesday after beating expectations for Q2. AZO stock has surged over 15 percent during the last 12 months. However, the stock has not gained any value so far in 2021.