11:04 AM EST, 12/09/2025 (MT Newswires) -- AutoZone's ( AZO ) fiscal first-quarter earnings declined year over year, while the auto parts retailer's revenue fell short of market estimates.

The company on Tuesday reported net income of $31.04 a share for the three months through Nov. 22, down from $32.52 a year before. The consensus on FactSet was for EPS of $32.03. Sales climbed to $4.63 billion from $4.28 billion, but were just shy of the Street's view for $4.64 billion.

AutoZone's ( AZO ) shares fell 4.6% in Tuesday trade, reducing the stock's year-to-date gain to 12%.

Overall same-store sales rose 5.5%, missing the average analyst estimate for a 5.6% gain. Domestic sales grew 4.8% in the quarter, faster than a 0.3% increase in the prior-year period, while international growth accelerated to 11% from 1%.

AutoZone ( AZO ) saw "reasonably stable" sales throughout the quarter, "mildly slowing over more difficult comparisons in October before modestly accelerating in November on similar comparisons," Truist Securities said in a client note. The auto parts retailer benefited from greater same-stock keeping unit inflation in the quarter, which is expected to continue into the next year, according to the brokerage.

Gross profit as a percentage of sales dropped by 203 basis points to 51%, driven by a last-in, first-out non-cash impact, according to the company. Truist projects the LIFO impact to continue over the next few quarters, "optically depressing EPS without affecting earnings power."

AutoZone ( AZO ) opened 39 stores in the US during the quarter through Nov. 22, along with 12 in Mexico and two in Brazil, giving it a total of 7,710 locations as of the end of the period.

"We plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share," AutoZone's ( AZO ) Daniele said.

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