Autozone Inc
NYSE:AZO
Autozone Inc
AutoZone Inc. stands as a towering giant in the realm of the auto parts retail industry, with a network sprawling across the United States, Mexico, and Brazil. Founded in 1979 as a small retail chain by entrepreneur J.R. “Pitt” Hyde III, it has grown into a formidable presence, driven by its commitment to providing high-quality automotive replacement parts and accessories. The company operates through a chain of stores and a robust online platform, offering a diverse array of products catering to the needs of both do-it-yourself (DIY) enthusiasts and professional service providers. With its streamlined distribution system, AutoZone efficiently manages its extensive inventory, ensuring the availability of critical components for various vehicle makes and models.
Central to AutoZone’s business model is its focus on customer satisfaction, which it achieves by leveraging knowledgeable staff, competitive pricing, and strategic store locations. The company earns revenue primarily through sales of aftermarket automotive parts, such as brake pads, alternators, batteries, and spark plugs. Additionally, it provides an array of tools and equipment for automotive repairs and maintenance. By catering to a broad customer base—from individual vehicle owners seeking cost-effective solutions to professional mechanics requiring prompt and reliable parts delivery—AutoZone capitalizes on the enduring demand for vehicle maintenance and repair, securing its position as a leader in the automotive aftermarket industry.
AutoZone Inc. stands as a towering giant in the realm of the auto parts retail industry, with a network sprawling across the United States, Mexico, and Brazil. Founded in 1979 as a small retail chain by entrepreneur J.R. “Pitt” Hyde III, it has grown into a formidable presence, driven by its commitment to providing high-quality automotive replacement parts and accessories. The company operates through a chain of stores and a robust online platform, offering a diverse array of products catering to the needs of both do-it-yourself (DIY) enthusiasts and professional service providers. With its streamlined distribution system, AutoZone efficiently manages its extensive inventory, ensuring the availability of critical components for various vehicle makes and models.
Central to AutoZone’s business model is its focus on customer satisfaction, which it achieves by leveraging knowledgeable staff, competitive pricing, and strategic store locations. The company earns revenue primarily through sales of aftermarket automotive parts, such as brake pads, alternators, batteries, and spark plugs. Additionally, it provides an array of tools and equipment for automotive repairs and maintenance. By catering to a broad customer base—from individual vehicle owners seeking cost-effective solutions to professional mechanics requiring prompt and reliable parts delivery—AutoZone capitalizes on the enduring demand for vehicle maintenance and repair, securing its position as a leader in the automotive aftermarket industry.
Sales Growth: AutoZone reported total sales of $4.6 billion, up 8.2% year-over-year, with strong domestic and international performance.
EPS Impacted by LIFO: Earnings per share fell 4.6% to $31.04, primarily due to a noncash $98 million LIFO charge; excluding this, EPS would have risen 8.9%.
Commercial Strength: Domestic commercial sales surged 14.5%, outpacing DIY growth and gaining share across customer segments.
Store Expansion: Opened 53 new stores globally in Q1—a near-record pace—and plans to accelerate openings to 350–360 this year and 500 annually by FY 2028.
Margin Pressures: Gross margin fell to 51%, down 203 bps mostly due to the LIFO charge and a shift towards faster-growing, lower-margin commercial business.
SG&A Investment: SG&A expenses rose 10.4% as the company invests in new stores, Mega-Hubs, and supply chain, with per-store SG&A up 5.8%.
Inflation & Tariffs: Product inflation remains elevated, with same SKU inflation up 4.8% in DIY and 6% in commercial; tariff impacts are lower than expected but still a headwind.
Guidance: Management expects continued strong sales and accelerated store growth, with LIFO and SG&A headwinds persisting but moderating over time.
Management
William C. Rhodes III is a prominent American businessman known for his significant role at AutoZone, Inc., one of the leading retailers and distributors of automotive replacement parts and accessories. William C. Rhodes III, often referred to as Bill Rhodes, has been with AutoZone for a substantial portion of his career, making considerable contributions to its growth and success. Rhodes joined AutoZone in 1994 and has held various important positions within the company. He became the President and Chief Executive Officer (CEO) of AutoZone in 2005 and later took on the role of Chairman of the Board in 2007. Under his leadership, AutoZone has seen impressive financial and operational growth, expanding its store network and enhancing its customer service and supply chain capabilities. Rhodes is known for his strategic focus on operational excellence and customer satisfaction, which has helped AutoZone maintain a strong position in the competitive automotive aftermarket industry. His leadership style emphasizes efficiency, innovation, and a strong company culture, which has driven AutoZone's consistent performance and market leadership. Before joining AutoZone, Rhodes worked at Ernst & Young, where he gained valuable experience in financial and managerial roles. He holds a Bachelor of Arts degree in Economics from the University of Tennessee and has completed executive education programs at institutions like Harvard Business School. Through his long-standing career, William C. Rhodes III has established himself as a key figure in the retail and automotive industries, and his contributions to AutoZone have been integral to the company's sustained success and growth.
Rhodes joined AutoZone in 1994 and has held various important positions within the company. He became the President and Chief Executive Officer (CEO) of AutoZone in 2005 and later took on the role of Chairman of the Board in 2007. Under his leadership, AutoZone has seen impressive financial and operational growth, expanding its store network and enhancing its customer service and supply chain capabilities.
Rhodes is known for his strategic focus on operational excellence and customer satisfaction, which has helped AutoZone maintain a strong position in the competitive automotive aftermarket industry. His leadership style emphasizes efficiency, innovation, and a strong company culture, which has driven AutoZone's consistent performance and market leadership.
Before joining AutoZone, Rhodes worked at Ernst & Young, where he gained valuable experience in financial and managerial roles. He holds a Bachelor of Arts degree in Economics from the University of Tennessee and has completed executive education programs at institutions like Harvard Business School.
Through his long-standing career, William C. Rhodes III has established himself as a key figure in the retail and automotive industries, and his contributions to AutoZone have been integral to the company's sustained success and growth.
Philip B. Daniele III is the Executive Vice President of Merchandising, Marketing, and Supply Chain at AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories in the United States. In his role, Daniele is responsible for overseeing the company's merchandising strategies, marketing initiatives, and supply chain operations, ensuring that AutoZone continues to meet the demands of its customers effectively and efficiently. Daniele joined AutoZone over two decades ago, starting his career with the company as a part-time employee while attending college. His dedication and leadership skills have propelled him through various roles within the organization, providing him with a comprehensive understanding of the business' operations and customer needs. Over the years, he has held multiple managerial positions, contributing to AutoZone's growth and its continuous improvement in service delivery. In his leadership capacity, Daniele has been instrumental in driving innovation within AutoZone, focusing on enhancing customer experience and operational efficiency. His leadership in these critical areas supports the company's commitment to delivering quality automotive products and exceptional service. Daniele's forward-thinking approach is central to AutoZone's mission to be a trusted and convenient resource for automotive solutions.
Daniele joined AutoZone over two decades ago, starting his career with the company as a part-time employee while attending college. His dedication and leadership skills have propelled him through various roles within the organization, providing him with a comprehensive understanding of the business' operations and customer needs. Over the years, he has held multiple managerial positions, contributing to AutoZone's growth and its continuous improvement in service delivery.
In his leadership capacity, Daniele has been instrumental in driving innovation within AutoZone, focusing on enhancing customer experience and operational efficiency. His leadership in these critical areas supports the company's commitment to delivering quality automotive products and exceptional service. Daniele's forward-thinking approach is central to AutoZone's mission to be a trusted and convenient resource for automotive solutions.
Jamere Jackson is a well-regarded executive in the business and finance sector, known for his expertise and leadership. He currently serves as the Chief Financial Officer (CFO) at AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories in the United States. Jackson joined AutoZone in September 2020, bringing with him a wealth of experience from various high-profile finance roles. Before joining AutoZone, Jamere Jackson held significant positions at well-established companies. He served as the CFO of Hertz Global Holdings, where he was responsible for overseeing all financial aspects, including treasury, accounting, tax, and investor relations. Prior to his tenure at Hertz, Jackson was the CFO at Nielsen Holdings, where he contributed to the company's strategic financial planning and execution. Jackson began his career in finance with roles at General Electric (GE), where he spent nearly a decade. At GE, he held various positions of increasing responsibility across different divisions, ultimately serving as the CFO for one of its major business units. His background at GE equipped him with extensive experience in financial management, strategic planning, and operational efficiency. In addition to his corporate responsibilities, Jamere Jackson is a Certified Public Accountant (CPA), underscoring his strong foundation in financial principles and regulatory compliance. His educational background includes a degree in finance from the University of Notre Dame, where he developed the analytical and leadership skills that have shaped his successful career. Throughout his career, Jackson has been recognized for his strategic vision, operational acumen, and commitment to driving financial excellence. His leadership at AutoZone is marked by a focus on financial discipline, value creation, and supporting the company's overall business objectives.
Before joining AutoZone, Jamere Jackson held significant positions at well-established companies. He served as the CFO of Hertz Global Holdings, where he was responsible for overseeing all financial aspects, including treasury, accounting, tax, and investor relations. Prior to his tenure at Hertz, Jackson was the CFO at Nielsen Holdings, where he contributed to the company's strategic financial planning and execution.
Jackson began his career in finance with roles at General Electric (GE), where he spent nearly a decade. At GE, he held various positions of increasing responsibility across different divisions, ultimately serving as the CFO for one of its major business units. His background at GE equipped him with extensive experience in financial management, strategic planning, and operational efficiency.
In addition to his corporate responsibilities, Jamere Jackson is a Certified Public Accountant (CPA), underscoring his strong foundation in financial principles and regulatory compliance. His educational background includes a degree in finance from the University of Notre Dame, where he developed the analytical and leadership skills that have shaped his successful career.
Throughout his career, Jackson has been recognized for his strategic vision, operational acumen, and commitment to driving financial excellence. His leadership at AutoZone is marked by a focus on financial discipline, value creation, and supporting the company's overall business objectives.
Thomas B. Newbern served as an executive at AutoZone, Inc., a leading retailer and distributor of automotive replacement parts and accessories. Newbern joined AutoZone in 1986 and held various roles within the organization, gaining extensive experience in the automotive retail sector. Throughout his career at AutoZone, Newbern's responsibilities grew as he took on key leadership roles. In his capacity at the company, he focused on enhancing store operations, improving customer service, and driving overall company growth. Newbern contributed significantly to AutoZone's expansion and operational strategies, helping to solidify its position as an industry leader. With decades of dedication to AutoZone, Newbern is recognized for his commitment to the company's core values and his impact on fostering a strong organizational culture. His leadership played a vital role in steering the company towards continued success in the competitive automotive aftermarket industry.
Throughout his career at AutoZone, Newbern's responsibilities grew as he took on key leadership roles. In his capacity at the company, he focused on enhancing store operations, improving customer service, and driving overall company growth. Newbern contributed significantly to AutoZone's expansion and operational strategies, helping to solidify its position as an industry leader.
With decades of dedication to AutoZone, Newbern is recognized for his commitment to the company's core values and his impact on fostering a strong organizational culture. His leadership played a vital role in steering the company towards continued success in the competitive automotive aftermarket industry.
William R. "Bill" Hackney is a respected executive known for his contributions to AutoZone, Inc., a leading retailer and distributor of automotive replacement parts and accessories. Hackney joined AutoZone in 1989, where he held various leadership roles, ultimately serving as the Executive Vice President for Supply Chain and Information Technology. During his tenure, Hackney was instrumental in developing and optimizing AutoZone's supply chain operations, which contributed significantly to the company's growth and efficiency. He played a key role in implementing advanced technologies and systems to streamline processes, improve inventory management, and enhance customer satisfaction. Hackney's leadership in integrating supply chain management with information technology positioned AutoZone as a leader in the automotive retail sector. His work not only improved operational efficiencies but also supported the company's rapid expansion and adaptation to changing market demands. After a long and successful career, Hackney retired from AutoZone, leaving behind a legacy of innovation and excellence. His contributions to the company are remembered as foundational elements that continue to support AutoZone's operations and strategic goals.
During his tenure, Hackney was instrumental in developing and optimizing AutoZone's supply chain operations, which contributed significantly to the company's growth and efficiency. He played a key role in implementing advanced technologies and systems to streamline processes, improve inventory management, and enhance customer satisfaction.
Hackney's leadership in integrating supply chain management with information technology positioned AutoZone as a leader in the automotive retail sector. His work not only improved operational efficiencies but also supported the company's rapid expansion and adaptation to changing market demands.
After a long and successful career, Hackney retired from AutoZone, leaving behind a legacy of innovation and excellence. His contributions to the company are remembered as foundational elements that continue to support AutoZone's operations and strategic goals.
Kenneth E. Jaycox Jr. is a notable executive at AutoZone, Inc., serving as the Senior Vice President of Store Operations, Commercial. In this role, he is responsible for overseeing the commercial sales operations and strategies of AutoZone, ensuring effective execution across numerous locations. Jaycox has been instrumental in driving growth and enhancing the commercial business unit by focusing on customer service excellence and operational efficiency. He has extensive experience within the automotive aftermarket industry and has played a key role in shaping the commercial sales strategies that contribute to AutoZone's success. Through his leadership and commitment to innovation, Jaycox continues to impact AutoZone's market presence and operational effectiveness positively.
John Scott Murphy serves as the Executive Vice President, General Counsel, and Secretary at AutoZone, Inc., a leading American retailer of aftermarket automotive parts and accessories. Murphy plays a vital role in overseeing the company's legal affairs, corporate governance, and related strategic initiatives. With extensive experience in corporate law, he ensures compliance with applicable regulations and manages legal risks associated with AutoZone's business operations. Before joining AutoZone, Murphy garnered significant expertise in various legal and corporate governance roles, which bolstered his capacity to lead AutoZone's legal team effectively. His leadership is integral in guiding AutoZone through complex legal environments and supporting the company's objectives for growth and stability within the automotive retail industry.
Before joining AutoZone, Murphy garnered significant expertise in various legal and corporate governance roles, which bolstered his capacity to lead AutoZone's legal team effectively. His leadership is integral in guiding AutoZone through complex legal environments and supporting the company's objectives for growth and stability within the automotive retail industry.
Brian L. Campbell serves as the Senior Vice President of Supply Chain at AutoZone Inc., a leading retailer and distributor of automotive replacement parts and accessories. In his role, Campbell is responsible for overseeing the company's supply chain operations, ensuring the efficient and effective distribution of products to AutoZone’s wide network of retail stores. His leadership plays a crucial role in maintaining the strong logistical framework that supports AutoZone’s commitment to customer service and market competitiveness. With extensive experience in supply chain management, Campbell contributes significantly to the strategic initiatives of AutoZone, driving innovation and operational excellence within the company.
Richard C. Smith is an executive at AutoZone, Inc., serving as the Vice President and Treasurer. In this role, he is responsible for managing the company’s treasury functions, which include overseeing capital structure, managing financial risks, and ensuring adequate liquidity to support the company's operational needs and strategic initiatives. His leadership in treasury operations helps to maintain AutoZone’s financial health and optimize its access to capital markets. With a strong background in finance and corporate strategy, Smith has contributed significantly to the company’s financial planning and risk management processes. His expertise is crucial in aligning financial strategies with AutoZone's long-term business objectives. Richard C. Smith's dedication to his role is evident in his strategic approach to managing the balance sheet and capital requirements, which bolsters the company's growth and operational efficiency.
With a strong background in finance and corporate strategy, Smith has contributed significantly to the company’s financial planning and risk management processes. His expertise is crucial in aligning financial strategies with AutoZone's long-term business objectives. Richard C. Smith's dedication to his role is evident in his strategic approach to managing the balance sheet and capital requirements, which bolsters the company's growth and operational efficiency.
