AutoZone, Inc. ( AZO ) shares are trading lower on Tuesday.

The company reported third-quarter earnings per share of $36.69, beating the street view of $36.20.

Quarterly revenues of $4.235 billion (+3.5% year over year) missed the analyst consensus of $4.298 billion. AutoZone ( AZO ) said its third-quarter total company same-store sales increased 0.9%, while domestic sales were flat.

“Domestically, our sales performance was negatively impacted at the start of the quarter due to the timing of tax refunds while the cooler than usual weather across several areas of the country negatively impacted our results later in the quarter,” said Phil Daniele, President and Chief Executive Officer.

For the quarter, gross profit was 53.5%, jumping 102 basis points year over year. Operating profit increased 4.9% to $900.2 million. 

The increase in gross margin was driven by higher merchandise margins and a 15 basis point ($7 million net) non-cash LIFO favorability.

During the quarter that ended May 4, AutoZone ( AZO ) opened 32 new stores in the U.S., 12 in Mexico, and 1 in Brazil, for a total of 45 net new stores. 

In total, the company had 6,364 stores in the U.S., 763 in Mexico, and 109 in Brazil, for a total store count of 7,236.

At the end of the third quarter, the company had $1.4 billion remaining under its current share repurchase authorization.

“As we begin our all-important summer selling season, we are very excited about the initiatives we have in place to enhance our inventory availability, continue to accelerate our domestic Commercial business, and provide great customer service,” Daniele added.

Price Action: AZO shares are trading lower by 1.67% to $2,875.14 at last check Tuesday. 

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