Autozone Inc

XMUN:AZ5

Sales: Q4 sales rose 5.6% to $6.6 billion, while same-store sales increased 1.5% on a constant-currency basis; domestic DIY was weak, but commercial sales grew 8.6%.

Earnings: EPS increased 15.1% to $56.05, including a $4.43-per-share benefit from tariff refunds and a $0.69-per-share LIFO cost; excluding LIFO charges in both years, EPS grew 8.5%.

Outlook: For FY '27, AutoZone expects domestic same-store sales flat to up low single digits, international comps up low to mid-single digits, and domestic commercial sales growth in the high single digits to low double digits.

Expansion: The company opened a record 374 stores in FY '26 and expects approximately 400 in FY '27, but lowered its FY '28 target from roughly 500 to 430, largely because it plans to slow Brazil expansion.

Investment: Capital spending was approximately $1.5 billion in FY '26, with a similar amount planned for FY '27; management says new-store performance is ahead of forecast, though rapid expansion is pressuring near-term returns.

Market: Management cited pressured DIY customers, softer transactions, inflation and early-quarter mild weather, but said sales momentum improved late in Q4 and expects DIY traffic trends to moderate.