AutoZone's Q4 Earnings Rose on $96M Tariff Refund Amid Mixed Sales Performance
AutoZone reported fiscal fourth-quarter earnings per share of $56.05, a 15.1% increase year-over-year driven largely by a $96 million refund under the International Emergency Economic Powers Act (IEEPA), which added approximately $4.43 to EPS. Domestic same-store sales grew modestly at 1.6%, with commercial segment sales rising 8.6% while DIY retail saw a slight decline in transactions, attributed partly to higher fuel prices and economic pressures on lower-income drivers. The company expects only partial recovery for fiscal 2027, forecasting flat-to-low single-digit domestic same-store sales growth alongside continued expansion of its commercial business through the rollout of Mega Hubs. AutoZone also plans a significant store opening program in 2026 and 2027, which will increase SG&A expenses but is expected to maintain return on invested capital at healthy levels. Share repurchases played a key role in EPS growth as well; $2 billion was spent buying back stock in fiscal 2026. TIKR values AutoZone's stock at approximately $4,609 by August 2031 based on its current trajectory and projected commercial segment performance.
Tickers: $AZO
Topics: commercial_sales diy_traffic same-store-sales tariffs