AutoZone (AZO) Q2 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 10:46 AM CST 51 min read

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Tuesday, March 3, 2026 astatine 10 a.m. ET

• Chief Executive Officer — Philip Daniele

• Chief Financial Officer — Jamere Jackson

• Vice President, Treasurer, Investor Relations, and Tax — Brian Campbell

Philip Daniele: Good morning, and convey you for joining america contiguous for AutoZone, Inc.'s 2026 2nd 4th league call. With maine contiguous are Jamere Jackson, Chief Financial Officer, and Brian Campbell, Vice President, Treasurer, Investor Relations, and Tax. Regarding the 2nd quarter, I anticipation you had an accidental to work our property merchandise and larn astir the quarter's results. If not, the property merchandise on with slides complementing our comments contiguous are disposable connected our website, www.autozone.com, nether the Investor Relations link. Please click connected Quarterly Earnings Conference Calls to spot them.

To commencement retired this morning, I privation to convey each AutoZoner crossed the institution for their committedness to delivering connected the archetypal enactment of our pledge: AutoZoners ever enactment customers first. Our results would not beryllium imaginable without america ever asking what the lawsuit needs and however we tin conscionable those needs much efficiently time successful and time out. It is our AutoZoners crossed the stores, proviso chain, our 8.1% this past quarter. To commencement this morning, we volition code some our income results and supply an update connected our maturation initiatives. We volition besides sermon our home and planetary results and interruption our income results down betwixt postulation and summons growth.

To code what ostentation has meant to some our summons maturation and our income growth. We volition besides stock determination disparities wherever they exist. And finally, our outlook and however we expect the twelvemonth to unfold arsenic we participate our outpouring and summertime selling season. For the 2nd quarter, our full income grew 8.1%, and akin to the archetypal 4th income growth, portion net per stock decreased 2.3%. Similarly to our acquisition successful the archetypal quarter, our gross margin, operating profit, and EPS were negatively impacted by a non-cash $59 cardinal LIFO charge, which had a worldly interaction connected our margins and EPS. Excluding this LIFO charge, our EPS would person been up 7.1% versus past year's Q2.

We besides delivered a affirmative 3.3 full aforesaid store income connected a changeless currency basis, with home aforesaid store income maturation of 3.4%. Our home DIY aforesaid store income grew 1.5%, portion our home commercialized income grew 9.8% versus past year's Q2. I volition intermission present to reiterate what we said during our past league call. Q2 is ever our astir hard to forecast owed to the little predictable wintertime upwind patterns, and this 4th was nary exception. While our commercialized income summation was beneath our expectations, our results were negatively impacted owed to the wintertime storms crossed overmuch of the state during the past four-week conception of the quarter.