AutoZone misses by $0.51, misses on revs :
- Reports Q3 (May) earnings of $11.44 per share, $0.51 worse than the Capital IQ Consensus of $11.95; revenues rose 1.0% year/year to $2.62 bln vs the $2.7 bln Capital IQ Consensus. Domestic comps -0.8%.
- For the quarter, gross profit, as a percentage of sales, was 52.6% (21 bps deleverage versus the same period last year). The decrease in gross margin was attributable to higher supply chain costs associated with current year inventory initiatives (-28 bps) and higher inventory shrink results (-20 bps), partially offset by lower acquisition costs. Operating expenses, as a percentage of sales, were 32.4% (25 bps deleverage versus the same period last year). Operating expenses, as a percentage of sales, were higher than last year primarily from fixed cost deleverage due to our comparable stores sales decline, higher self-insurance cost and increasing wage pressures, partially offset by favorability from last year's discrete legal charge and lower incentive compensation. Under its share repurchase program, AutoZone repurchased 396 thousand shares of its common stock for $284 million during the third quarter, at an average price of $716 per share.
- At the end of the third quarter, the Company had $1.051 billion remaining under its current share repurchase authorization. The Company's inventory increased 7.3% over the same period last year, driven by new stores and increased product placement.
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