09:11 AM EDT, 09/23/2025 (MT Newswires) -- AutoZone's ( AZO ) fiscal fourth-quarter results fell short of market estimates, despite the company recording sequential improvements in its domestic do-it-yourself and commercial sales.

The auto parts retailer on Tuesday posted adjusted earnings of $48.71 a share for the three months through Aug. 30, up from $48.11 a year before. The consensus on FactSet was for non-GAAP EPS of $50.57. Sales edged up to $6.24 billion from $6.21 billion, but were just shy of the Street's view for $6.25 billion. On an adjusted basis, sales increased 6.9% annually.

The company said it adjusted its prior-year quarterly results to exclude the impact of the 17th week of operations. The stock fell 2.9% in the most recent premarket activity.

Overall same-store sales inclined 4.5%, trailing the average analyst estimate for a 5% gain. Domestic same-store sales grew 4.8% in the quarter, accelerating from a 0.2% increase in the prior-year period, while international comparable sales slowed down to 2.1% from 4.9%.

"Domestically, both DIY and commercial sales improved sequentially throughout the quarter, and we are pleased with our momentum heading into our new fiscal year," Chief Executive Phil Daniele said in a statement. "Our international business also continued to deliver strong results, growing same store sales 7.2% on a constant currency basis."

Gross profit as a percentage of sales declined by 98 basis points to 51.5%, driven by an $80 million last-in, first-out non-cash impact, partially offset by higher merchandise margins, according to the company.

AutoZone ( AZO ) opened 91 stores in the US during the quarter, along with 45 in Mexico and six in Brazil, giving it a total of 7,657 locations as of Aug. 30. "We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time," according to Daniele.

The combination of greater same stock keeping unit inflation and increasing prices of new and used vehicles should lead to stronger top-line trends for the company in the coming quarters, Truist Securities said in a note.