AutoZone 4th Quarter Same Store Sales increase 2.1 AutoZone 4th Quarter Same Store Sales increase 2.1%; EPS increases 17.8% to $8.46; Fiscal 2012 EPS increases 20.6% to $23.48; and, ROIC improves to 33.0%
MEMPHIS, Tenn., Sep 19, 2012 (GLOBE NEWSWIRE via COMTEX) --
AutoZone, Inc. (NYSE:AZO) today reported net sales of $2.8 billion for its fourth quarter (16 weeks) ended August 25, 2012, an increase of 4.6% from the fourth quarter of fiscal 2011 (16 weeks). Domestic same store sales, or sales for stores open at least one year, increased 2.1% for the quarter.
Net income for the quarter increased $22.3 million, or 7.4%, over the same period last year to $323.7 million, while diluted earnings per share increased 17.8% to $8.46 per share from $7.18 per share in the year-ago quarter.
For the quarter, gross profit, as a percentage of sales, was 51.8% (versus 51.2% for last year's quarter). The improvement in gross margin was attributable to an improvement in merchandise margins (55 bps) primarily from lower acquisition costs. Operating expenses, as a percentage of sales, were 31.6% (versus 31.4% last year). The increase in operating expenses, as a percentage of sales, was negatively impacted by higher store payroll (45 bps) and higher self-insurance costs (39 bps), partially offset by lower incentive compensation.
For the fiscal year ended August 25, 2012, sales were $8.6 billion, an increase of 6.6% from the prior year, while domestic same store sales were up 3.9%. Operating profit increased 9.0% on an operating margin of 18.9%. For fiscal 2012, net income increased 9.6% to $930 million, while diluted earnings per share for the period increased 20.6% to $23.48 from $19.47. Driven by improved earnings and a declining equity base, return on invested capital reached 33.0%, while full year cash flow before share repurchases and changes in debt was $950 million.
Under its share repurchase program, AutoZone repurchased 1.3 million shares of its common stock for $480 million during the fourth quarter, at an average price of $374 per share. For the fiscal year, the Company repurchased 3.8 million shares of its common stock for $1.4 billion, at an average price of $359 per share. At the fiscal year end, the Company had $356 million remaining under its current share repurchase authorization.
The Company's inventory increased 6.6% over the same period last year, driven primarily by new store openings. Inventory per store was $525 thousand versus $512 thousand last year and $536 thousand last quarter. Net inventory, defined as merchandise inventories less accounts payable, was flat, relative to last year, on a per store basis, at negative $60 thousand per store.
"I would like to thank our entire organization for the solid performance delivered this past quarter. We are pleased to report our twenty-fourth consecutive quarter of double digit earnings per share growth. For the year, we reached many new milestones which included opening our 5,000th store in Alaska. We also improved our return on invested capital, achieving 33.0% at year end. While our same store sales performance was below our expectations for the quarter, we are confident we are well positioned to again deliver strong results for our new fiscal year. We remain committed to delivering exceptional customer service while growing our Retail, Commercial, and international store business models. We will maintain our disciplined approach to growing operating earnings and utilizing our capital effectively," said Bill Rhodes, Chairman, President and Chief Executive Officer.
During the quarter ended August 25, 2012, AutoZone opened 72 new stores, relocated 2 stores in the U.S. and opened 24 new stores in Mexico. As of August 25, 2012, the Company had 4,685 stores in 49 states, the District of Columbia and Puerto Rico in the U.S. and 321 stores in Mexico for a total count of 5,006.
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