EmailAutoZone (AZN $45.98 +0.54) reported first quarter earnings of $4.68 per share, $0.24 better than the consensus of $4.44, while revenues rose 7.4% year/year to $1.92 billion versus the $1.89 bln consensus; domestic comps +4.6%. For the quarter, gross profit, as a percentage of sales, was 51.1% (versus 50.7% for last year's quarter).
The improvement in gross margin was attributable to lower distribution costs on higher sales (23 bps), lower shrink expense (18 bps) and slightly higher merchandise margins. Under its share repurchase program, AutoZone repurchased 954 thousand shares of its common stock for $310 million during the first quarter, at an average price of $325 per share.
At quarter end, the Company had $659 million remaining under its current share repurchase authorization. The Company's inventory increased 7.2% over the same period last year, driven by new stores and continued strategic investments in parts assortment. Inventory per store was $524 thousand versus $508 thousand last year, an increase of 3.0%.
