AutoZone reported net sales of $4.6 billion for its first quarter ended November 22, 2025, showing an increase of 8.2% from the same period last year.
The company experienced a 4.7% increase in total company same store sales, with domestic same store sales up by 4.8%.
Gross profit as a percentage of sales was 51.0% with a decrease of 203 basis points versus the prior year.
Sales Growth
Net sales for the first quarter increased by 8.2% compared to the same period last year.
Store Expansion
AutoZone opened 53 net new stores globally during the quarter, emphasizing a focus on gaining market share.
Financial Performance
Operating profit decreased by 6.8% to $784.2 million, with a net income of $530.8 million and diluted earnings per share of $31.04.
- The decrease in gross margin was driven by a non-cash LIFO impact, offset by other net margin improvements.
- Operating expenses as a percentage of sales increased to 34.0% primarily due to investments supporting growth initiatives.
AutoZone's strong sales growth and store expansion efforts demonstrate a commitment to market share dominance. Despite some margin challenges, the company's focus on increasing earnings and cash flow shows a dedication to driving shareholder value.