AutoZone’s fourth-quarter revenue rose 5.6% to $6.59 billion, missing the $6.7 billion consensus, while earnings per share climbed 15.1% to $56.05, above the $53.84 estimate. Tariff refunds boosted gross margin by 145 basis points, a roughly $100 million windfall.
AutoZone does not give formal guidance, but said it expected first-quarter same-store sales to be relatively flat as higher oil and gas prices weigh on traffic, with the average ticket up 5%. For fiscal 2027, it expects gross margin to be flat to 25 basis points higher. It opened 374 stores in fiscal 2026, plans 400 in fiscal 2027, and reduced its fiscal 2028 opening target from 500 to 430.
The article attributed AutoZone’s nearly 40% decline from its peak over the prior year to valuation concerns and sluggish DIY-sector growth amid inflation; shares rose more than 3% after the results. The Motley Fool author said the stock still looked like a buy, while wishing for stronger same-store sales growth. Buybacks reduced shares outstanding by 3.3% over the year.
