AutoZone first-quarter profit rises 10% on strong parts demand

OReilly Automotive

05/12/2023 12:30

Dec 5 (Reuters) - Automotive parts retailer AutoZone
 AZO.N  on Tuesday posted a better-than-expected 10% rise in
quarterly profit as demand for its Do-It-Yourself (DIY) kits
benefited from more people maintaining their existing vehicles
instead of buying new ones. 
    The new-car market is on a nascent recovery path after
months of supply chain issues and lackluster consumer spending
prompted by high interest rates and inflation. 
    "The record-high average U.S. vehicle age (now 12.5 years)
should continue to act as a strong growth tailwind (for
AutoZone)," CFRA analyst Garrett Nelson said on Monday. 
    The company, which competes with Advance Auto Parts  AAP.N 
and O'Reilly Automotive  ORLY.O , said quarterly net sales rose
about 5.15% to $4.19 billion. 
    Domestic same-store sales in the quarter ended Nov. 18
remained constant at 1.2%.
    First-quarter net income rose to $593 million, or $32.55 per
share, compared with $539 million, or $27.45 per share, a year
ago. Analysts expected $31.49 per share, according to LSEG data.

 (Reporting by Nathan Gomes in Bengaluru; Editing by Devika
Syamnath)
 ((Nathan.Gomes@thomsonreuters.com;))