AutoZone, Inc. Q2 2026 Earnings Call Summary

Moby Intelligence

Tue, March 3, 2026 astatine 11:32 AM CST 3 min read

• Total income grew 8.1% contempt terrible wintertime upwind successful the last weeks of the 4th which temporarily suppressed commercialized activity.

• Domestic commercialized income accrued 9.8%, driven by improved outer store inventory and the enlargement of the Mega Hub network.

• Management attributed a important information of the commercialized slowdown to concern closures during weeks 10 and 11, wherever maturation dipped to 1% compared to 12% successful the preceding 10 weeks.

• DIY same-store income remained resilient astatine 1.5%, supported by a 5.2% summation successful mean summons which offset a 3.6% diminution successful traffic.

• The institution is aggressively accelerating its planetary footprint, opening 64 stores this 4th compared to 45 successful the anterior twelvemonth period.

• International changeless currency maturation of 2.5% reflects a brushed macro situation successful Mexico, though the institution continues to summation marketplace stock successful that region.

• Strategic investments successful the proviso chain, including the 'Supply Chain 2030' project, are aimed astatine placing inventory person to customers to amended transportation speed.

• Management expects to unfastened 350 to 360 caller stores for the afloat fiscal year, with a semipermanent people of 500 yearly openings by 2028.

• Average summons maturation is expected to highest successful the 4th fourth arsenic the institution begins to thigh precocious prior-year ostentation and weighted mean costs emergence owed to tariffs.

• The institution anticipates a 'snapback' successful request during the outpouring and summertime seasons, arsenic utmost wintertime upwind typically drives aboriginal nonaccomplishment and attraction events.

• LIFO charges are projected to stay astatine astir $60 cardinal per 4th for the remainder of fiscal 2026 owed to persistent tariff-related outgo pressures.

• Capital expenditures are planned astatine astir $1.6 cardinal for the existent twelvemonth and a akin magnitude for adjacent twelvemonth to enactment hub and Mega Hub expansion.

• A non-cash $59 cardinal LIFO complaint importantly impacted margins and EPS; excluding this, EPS would person grown 7.1% alternatively of declining 2.3%.

• Foreign speech served arsenic a worldly tailwind, with the strengthening Mexican peso contributing $0.95 to EPS.

• Inventory per store roseate 8.1%, reflecting strategical investments to enactment maturation initiatives and the interaction of inflation.

• The institution noted determination underperformance successful the Mid-Atlantic and South Atlantic areas, portion the West Coast was impacted by milder but wetter weather.

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