AutoZone Earnings Per Share Jump 65% In First Quarter.

AutoZone, Inc., reported diluted earnings per share of $0.76 for its first quarter (12 weeks) ended November 17, 2001, a 65 percent increase from diluted earnings per share of $0.46 in the first quarter of fiscal 2001.

Sales for the quarter increased 11 percent to $1.18 billion from $1.06 billion reported for the year ago quarter. Same store sales, or sales for domestic auto parts stores open at least one year, increased 9 percent during the quarter. Operating profits were up 40 percent to $156 million from $111 million, with operating margins of 13.2 percent, compared to 10.4 percent last year.

"We are in a dynamic and growing industry, and that growth is accelerating with the increase in the population of cars and light trucks seven years and older, the vehicles our typical customers drive. Moreover, growth in our industry is not hurt by the economic slowdown. We believe the number of miles driven may actually increase with lower gas prices and as people choose driving over flying. As miles driven increase, vehicles need more maintenance," said Steve Odland, chairman, president, and chief executive officer

"The addition of new merchandise, along with more effective advertising and marketing have increased AutoZone's market share, and we believe, has helped expand the size of the industry. Our profit margins are improving as we implement our strategic plan. New merchandise, better product cost, strategic pricing, and relentless expense discipline have helped us restore and to begin to exceed our historically strong EBIT margins."

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