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Auto components retailer AutoZone is planning to proceed to increase its portfolio of brick and mortar places because the auto business faces greater costs.
AutoZone mentioned that within the quarter that ended on Nov. 22, the corporate opened 39 new shops within the U.S., together with 12 in Mexico and two in Brazil for a web 53 new shops. As of that date, AutoZone had 6,666 shops within the U.S., plus 895 in Mexico and 149 in Brazil for a complete of seven,710 shops globally.
“Our domestic and international businesses performed well throughout the quarter as we continue to execute on our growth initiatives,” AutoZone CEO Phil Daniele mentioned within the firm’s earnings announcement.
An AutoZone retailer in Martinez, California, on Dec. 8, 2025. (David Paul Morris/Bloomberg by way of Getty Photos)
“We were especially pleased to open 53 net new stores globally in the quarter and we plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share.”
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AutoZone is including extra retailer places regardless of shifts within the auto business. (Patrick T. Fallon/Bloomberg by way of Getty Photos)
“As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value,” Daniele added.
AutoZone is a retailer and distributor of substitute auto components and aftermarket equipment, with a broad product line to cowl automobiles, SUVs, vehicles, vans and extra. Daniele famous that inflation and tariffs have pushed prices and gross sales figures greater, although
“We think the inflation is going to increase through what would be our third quarter on a year-over-year basis,” Daniele mentioned on Tuesday’s earnings name. “We’ll start to lap some of that, I suspect there’ll still be some increases, but they’ll probably be a little bit less muted in the latter part of what would be our Q4, more like the summertime.”
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Ticker Safety Final Change Change % AZO AUTOZONE INC. 3,492.77 -272.70
-7.24%
Daniele mentioned that in the previous few years the lower-end client has been beneath strain for “quite some time” however they’ve remained comparatively steady, including that there “hasn’t been a significant wobble” amongst that class of client.
A lot of the tariff-induced value hikes had been seen in discretionary classes, versus gadgets which are essential for repairs, which he mentioned is a comparatively small a part of their enterprise. These classes struggled the previous few years however have stabilized within the final 12 months.
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AutoZone’s Daniele mentioned that lower-end shoppers have been beneath strain however seem comparatively steady. (Andrea Morales/Bloomberg by way of Getty Photos)
He mentioned that AutoZone has seen little “trade down” from shoppers as a result of there are solely sure product classes the place the corporate has a variety of choices at completely different value factors.
“We don’t have a lot of categories where you would see trade down. We have some good, better, best opportunities in batteries and brakes and wiper blades, things of that nature,” Daniele mentioned.
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“But the vast majority of our inventory is generally one part that fits a particular vehicle, and there’s not a whole lot of upsell opportunities based on good, better, best opportunities. There’s a little bit, but it’s really not been that meaningful,” he added.
