May 27 (Reuters) - AutoZone Inc ( AZO ) on Tuesday

reported a 6.6% drop in quarterly profit, as softening demand

and currency fluctuations weighed on the auto parts retailer's

margins.

The Memphis, Tennessee-based auto parts retailer has been

under pressure from consumers pulling back on buying certain

parts, pressuring margins.

Its domestic same-store sales rose 5% in the third quarter

ended May 10, compared to a flat growth last year, aided by

sustained demand from commercial customers.

The industry has also been dealing with higher supply chain

costs due to U.S. President Donald Trump's tariffs, while

consumers have also tightened their budgets amid concerns of a

recession.

Trump's shifting tariff policies and trade war rhetoric have

also led to volatility in global markets, and put pressure on

the U.S. dollar.

AutoZone's ( AZO ) quarterly net sales rose 5.4% to about $4.5

billion, topping estimates of about $4.36 billion, according to

data compiled by LSEG.

The company's net income fell to $608.4 million, or $35.36

per share, in the third quarter, compared with $651.7 million,

or $36.69 per share, a year ago.