10:16 AM EDT, 09/24/2024 (MT Newswires) -- AutoZone's ( AZO ) fiscal fourth-quarter results increased less than Wall Street's expectations on a yearly basis, while the auto parts retailer's domestic commercial business underperformed analyst estimates.

Net income rose to $51.58 a share for the quarter ended August from $46.46 the year before, but trailed the Capital IQ-polled consensus of $53.41. Sales rose 9% to $6.21 billion, just shy of the Street's view for $6.22 billion. The stock was down 2.5% in Tuesday trading.

Domestic same-store sales edged up 0.2%, down from the 1.7% gain logged last year, and below the 1.2% increase modeled by analysts in a Visible Alpha poll. International comparable sales increased 4.9%, while overall same-store sales moved 0.7% higher.

"Domestically, our business continues to be challenged by deferrals across our discretionary merchandise categories, but we were pleased to see accelerating commercial sales performance," Chief Executive Phil Daniele said in a statement. "While currency rate moves slowed sales and earnings growth, our performance remains strong."

Gross margin deteriorated by 21 basis points to 52.5%. Operating and selling, general and administrative expenses rose to $1.96 billion from $1.78 billion year-on-year.

AutoZone's ( AZO ) inventory rose 6.8% to $6.16 billion as the retailer opened 68 stores in the US. It opened 31 locations in Mexico and 18 in Brazil, bringing its total count to 7,353 by the end of August.

"We are excited about the initiatives we have in place to improve inventory availability, continue to accelerate our domestic commercial business, grow our international businesses and remain focused on delivering great customer service," according to Daniele. "As we continue to invest in our business, we will remain committed to our disciplined approach of increasing earnings and cash flow, all while delivering strong shareholder value."

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