March 4 (Reuters) - AutoZone ( AZO ) on Tuesday missed
Wall Street estimates for second-quarter revenue, as the
automotive parts retailer navigated headwinds due to consumers
holding back and currency rate fluctuations.
Shares of the company fell about 2.2% in premarket trading
following the results.
The retailer had previously warned that inflationary
headwinds were weighing on its wallet-cautious buyers, which
impacted its DIY segment.
U.S. President Donald Trump's move to levy tariffs on
imports from Mexico and Canada as well as double the duties on
Chinese goods to 20% is also expected to affect the auto
industry as it attempts to cut costs.
Bernstein analyst Daniel Roeska said he anticipates the
tariffs will cause "severe disruptions" in North American supply
chains and automotive profit margins.
AutoZone's ( AZO ) quarterly net sales fell 2% to about $3.95
billion, missing estimates of about $3.98 billion, according to
data compiled by LSEG.
Its domestic same-store sales in the quarter ended February
15 rose 1.9%, compared with an increase of 0.3% a year ago.
The company's net income was $515 million, or $28.29 per
share, in the fourth quarter, compared with $487.9 million, or
$28.89 per share, a year ago.