AutoZone, Inc. (NYSE:AZO) stock fell Tuesday despite the company reporting stronger third-quarter revenue growth and continued expansion across its commercial and international businesses.
AutoZone Posts Strong Revenue Growth Despite Stock Decline
The automotive-parts retailer, which serves both do-it-yourself customers and professional mechanics through its stores and online platforms, reported third-quarter earnings of $38.07 per share, beating analyst estimates of $36.10. Revenue increased 8.4% year over year to $4.84 billion, ahead of Wall Street expectations of $4.83 billion.
Comparable Sales Rise Amid Margin Pressure
AutoZone said total same-store sales increased 5.5% during the quarter. Domestic same-store sales rose 4.1%, while international same-store sales climbed 16.6%. On a constant-currency basis, international same-store sales increased 1.6%.
Gross margin declined 57 basis points year over year to 52.2%, reflecting a 77-basis-point net non-cash LIFO impact.
Inventory increased 10.8% from a year earlier, driven mainly by inflation and growth initiatives.
Operating profit rose 6.6% to $923.8 million, while net income increased to $641.5 million from $608.4 million a year earlier.
Store Expansion Supports International Growth
During the quarter ended May 9, 2026, AutoZone opened …