AutoZone Reports 8.1% Second-Quarter Sales Growth

AutoZone reported net sales of $4.27 billion for its second quarter of fiscal 2026, an 8.1% increase compared to the prior year. The consensus estimate had projected net sales of $4.31 billion. Total company same-store sales rose 3.3% on a constant-currency basis and 5.2% on a nominal basis.

Domestic same-store sales grew 3.4% during the period. Domestic commercial sales reached $1.2 billion, representing a 9.8% expansion. Domestic do-it-yourself same-store sales rose 1.5%, supported by a 5.2% increase in the average ticket that offset a 3.6% drop in transaction count. International same-store sales climbed 2.5% in constant currency and 17.1% nominally.

Gross profit margin contracted by 137 basis points to 52.5%, affected by a non-cash LIFO inventory charge of $59 million. Operating expenses represented 36.1% of net sales. Operating profit fell 1.2% to $698.5 million.

Net income declined 3.9% year-over-year to $468.9 million, compared with $487.9 million in the second quarter of fiscal 2025. Diluted earnings per share dropped 2.3% to $27.63 from $28.29 a year earlier, topping the consensus estimate of $27.17. AutoZone opened 64 net new stores to reach 7,774 locations as of 14 February 2026, generated $15 million in free cash flow, and spent $310.8 million on share repurchases.