AutoZone Reports Q4 2026 Earnings, Highlights Commercial Growth and Store Expansion
AutoZone reported strong performance in its fourth quarter of fiscal year 2026, driven by a significant increase in commercial segment sales. The company achieved total sales growth of 5.6%, with the commercial division growing nearly 11% for the full year. Despite softer DIY same-store sales due to lower foot traffic and inflationary pressures, management noted an August recovery linked to hot weather product demand. The firm opened a record 374 new stores in FY2026, reaching key milestones including 1,000 locations in Mexico and 8,000 globally. Strategic investments in 'Mega Hubs' are contributing to improved sales performance by enhancing parts availability and delivery speed. Gross margin expanded by 182 basis points due to a $96 million tariff refund and supply chain efficiencies. Looking ahead, AutoZone expects FY2027 domestic same-store sales growth of flat to low-single digits with an average ticket size increase of about 4%. The company plans to open approximately 400 new stores in the next fiscal year while slowing expansion into Brazil. Management also anticipates lower LIFO charges and continued focus on supply chain improvements.
Topics: automotive parts retail sales growth store expansion