AutoZone misses first-quarter profit, revenue estimates

Autozone

10/12/2024 13:23

Dec 10 (Reuters) - Automotive parts retailer AutoZone
 AZO.N  missed estimates for first-quarter profit and revenue on
Tuesday, hurt by higher raw material prices and a stronger
dollar.
    Auto parts retailers have benefited from do-it-yourself
automotive parts demand from consumers buying more to keep their
ageing cars on the roads amid a pricey new car market.
    Although, a rise in raw materials prices has impacted prices
for a range of products including automotive components.
    Additionally, a looming threat from U.S. President-elect
Donald Trump's proposed tariff hikes on imports might also hurt
prices of automotive parts.
    "If we get tariffs, we will pass those tariff costs back to
the consumer, and we'll pass them through," AutoZone CEO Philip
Daniele had said in September. 
    Quarterly net sales at the retailer rose 2% to about $4.28
billion, marginally lower than estimates of about $4.3 billion,
according to data compiled by LSEG.
    Domestic same-store sales in the quarter ended Nov. 23 rose
0.3%, compared with an increase of 1.2% a year ago.
    The company's net income was $564.9 million, or $32.52 per
share, in the quarter, compared with $593.5 million, or $32.55
per share, a year ago. Analysts had expected $33.55 per share.

 (Reporting by Nathan Gomes in Bengaluru; Editing by Maju
Samuel)
 ((Nathan.Gomes@thomsonreuters.com;))