AutoZone Inc (AZO) Q3 2024 Earnings Report

Revenue: QQ3 2024 revenue of $4.235B, up 3.5% year over year as per management commentary; Domestic comps flat; International comps +9.3% in constant currency. Gross margin: 53.5%, up 102 bps versus prior year, with ex-LIFO gross margin up 87 bps; LIFO credit for the quarter: $24M (vs. $17M last year). Operating income: $900.18M, up 4.9%. Net income: $651.73M; EPS (diluted): $36.69. Tax rate: 18.1% for QQ3. Free cash flow: $434.38M; Operating cash flow: $669.48M; Capex: $235.10M; Cash balance: $275.36M. Inventory: $6.155B with days-of-inventory outstanding ≈ 281 days; Current ratio ≈ 0.79, quick ratio ≈ 0.03, cash ratio ≈ 0.03. Total debt: $11.959B; long-term debt: $8.496B; cash + investments: $275M; Leverage target: 2.5x EBITDAR; Negative stockholders’ equity: -$4.838B. Share repurchases: $735M in the quarter with $1.4B remaining under buyback authorization. Mega hubs: 103 in operation, with a plan to exceed 200 at full build-out. International footprint: 872 stores opened internationally (Mexico and Brazil growth: +12 stores in Mexico to 763 total; Brazil to 109). Management commentary notes that weather disruption and delayed tax refunds weighed on domestic momentum in QQ3 but expect improvements in Q4 and beyond through the ongoing commercial rollout and supply chain enhancements. Relevant ratios include gross margin 53.5%, operating margin 21.3%, and EBIT margin 21.3%.