Form 8-K
0000866787 False 0000866787 2022-03-01 2022-03-01 iso4217:USD xbrli:shares iso4217:USD xbrli:shares



Washington, D.C. 20549





Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 1, 2022



(Exact name of registrant as specified in its charter)


(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification No.)

123 South Front Street

Memphis, Tennessee 38103

(Address of Principal Executive Offices) (Zip Code)

(901) 495-6500

(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareAZONew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On March 1, 2022, AutoZone, Inc. issued a press release announcing its earnings for the fiscal quarter ended February 12, 2022 which is furnished as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

The following exhibits are furnished with this Current Report pursuant to Item 2.02:

(d) Exhibits

99.1     Press Release dated March 1, 2022
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: March 1, 2022By: /s/ Jamere Jackson        
  Jamere Jackson
  Chief Financial Officer and Executive Vice President - Finance and Store Development




AutoZone 2nd Quarter Same Store Sales Increase 13.8%; EPS Increases to $22.30

MEMPHIS, Tenn., March 01, 2022 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales of $3.4 billion for its second quarter (12 weeks) ended February 12, 2022, an increase of 15.8% from the second quarter of fiscal 2021 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 13.8% for the quarter.

“Our second quarter’s results are a reflection of our AutoZoners’ continued commitment to delivering exceptional service to our customers during these unique times. Our retail and commercial sales performance remained strong this quarter. While our commercial sales growth continued to be elevated at 32.1%, our retail sales growth also remained healthy with over 10% growth against a tough comparison from a year ago. We believe the initiatives we have in place position us well for the remainder of our fiscal year,” said Bill Rhodes, Chairman, President and Chief Executive Officer.

For the quarter, gross profit, as a percentage of sales, was 53.0%, a decrease of 59 basis points versus the prior year. The decrease in gross margin was primarily driven by initiatives to accelerate Commercial growth. Operating expenses, as a percentage of sales, was 34.4% versus 37.0% last year. The decrease in operating expenses, as a percentage of sales, was driven by strong sales growth and approximately $40 million (137 basis points) in prior year pandemic related expenses, including Emergency Time-Off for our AutoZoners.

Operating profit increased 30.1% to $626.7 million. Net income for the quarter increased 36.4% over the same period last year to $471.8 million, while diluted earnings per share increased 49.4% to $22.30 from $14.93 in the year-ago quarter. The increase in net income was driven by topline growth and operating expense leverage.

Under its share repurchase program, AutoZone repurchased 783 thousand shares of its common stock for $1.6 billion during the second quarter, at an average price of $1,992 per share. At the end of the second quarter, the Company had $958 million remaining under its current share repurchase authorization.

The Company’s inventory increased 6.2% over the same period last year, driven by new stores, hubs and megahubs with the remaining growth primarily due to inflation. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $198 thousand versus negative $93 thousand last year and negative $207 thousand last quarter.

“As we continue to focus on the health and well-being of our customers and AutoZoners, we remain committed to providing the best and safest place to shop for everyone’s automotive needs. During these unique and challenging times, we strive to deliver the best customer service possible. As we continue to prudently invest capital in our business, we remain focused on returns on capital. We are committed to our long-term approach of increasing operating earnings and free cash flows while utilizing our balance sheet effectively,” said Rhodes.

During the quarter ended February 12, 2022, AutoZone opened 26 new stores and closed one in the U.S., opened three stores in Mexico and two stores in Brazil. As of February 12, 2022, the Company had 6,091 stores in the U.S., 669 in Mexico and 55 in Brazil for a total store count of 6,815.

AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts. We also have commercial programs in all stores in Mexico and Brazil. AutoZone also sells the ALLDATA brand automotive diagnostic, repair and shop management software through Additionally, we sell automotive hard parts, maintenance items, accessories and non-automotive products through, and our commercial customers can make purchases through We also provide product information on our Duralast branded products through AutoZone does not derive revenue from automotive repair or installation.

AutoZone will host a conference call this morning, Tuesday, March 1, 2022, beginning at 10:00 a.m. (EST) to discuss its second quarter results. This call is being web cast and can be accessed, along with supporting slides, at AutoZone’s website at and clicking on Investor Relations. Investors may also listen to the call by dialing (877) 545-0523, passcode AutoZone. In addition, a telephone replay will be available by dialing (877) 481-4010, replay passcode 44573 through April 1, 2022.

This release includes certain financial information not derived in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP measures include adjustments to reflect return on invested capital, adjusted debt and adjusted debt to EBITDAR. The Company believes that the presentation of these non-GAAP measures provides information that is useful to investors as it indicates more clearly the Company’s comparative year-to-year operating results, but this information should not be considered a substitute for any measures derived in accordance with GAAP. Management targets the Company’s capital structure in order to maintain its investment grade credit ratings. The Company believes this is important information for the management of its debt levels and share repurchases. We have included a reconciliation of this additional information to the most comparable GAAP measures in the accompanying reconciliation tables.

Certain statements contained in this press release constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “seek,” “may,” “could” and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: product demand; energy prices; weather; competition; credit market conditions; cash flows; access to available and feasible financing; future stock repurchases; the impact of recessionary conditions; consumer debt levels; changes in laws or regulations; risks associated with self-insurance; war and the prospect of war, including terrorist activity; the impact of public health issues, such as the ongoing global coronavirus pandemic; inflation; the ability to hire, train and retain qualified employees; construction delays; the compromising of confidentiality, availability or integrity of information, including due to cyber-attacks; historic growth rate sustainability; downgrade of our credit ratings; damage to our reputation; challenges in international markets; failure or interruption of our information technology systems; origin and raw material costs of suppliers; inventory availability; disruption in our supply chain; impact of tariffs; anticipated impact of new accounting standards; and business interruptions. Certain of these risks and uncertainties are discussed in more detail in the “Risk Factors” section contained in Item 1A under Part 1 of the Company’s Annual Report on Form 10-K for the year ended August 28, 2021, and these Risk Factors should be read carefully. Forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements, and events described above and in the “Risk Factors” could materially and adversely affect our business. However, it should be understood that it is not possible to identify or predict all such risks and other factors that could affect these forward-looking statements. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Financial: Brian Campbell at (901) 495-7005,
Media: David McKinney at (901) 495-7951,

AutoZone's 2nd Quarter Highlights - Fiscal 2022   
Condensed Consolidated Statements of Operations
2nd Quarter, FY2022
(in thousands, except per share data)   
    GAAP Results   
    12 Weeks Ended 12 Weeks Ended   
    February 12, 2022 February 13, 2021(2)   
Net sales $3,369,750  $2,910,818    
Cost of sales  1,584,524   1,351,435    
Gross profit  1,785,226   1,559,383    
Operating, SG&A expenses  1,158,466   1,077,616    
Operating profit (EBIT)  626,760   481,767    
Interest expense, net  42,471   46,012    
Income before taxes  584,289   435,755    
Income tax expense(1)  112,534   89,809    
Net income $471,755  $345,946    
Net income per share:       
 Basic $23.00  $15.27    
 Diluted $22.30  $14.93    
Weighted average shares outstanding:       
 Basic  20,513   22,648    
 Diluted  21,158   23,168    
(1)The twelve weeks ended February 12, 2022 and the comparable prior year period include $23.4M and $11.6M in tax benefits from stock option exercises, respectively
(2)The twelve weeks ended February 13, 2021 was negatively impacted by pandemic related expenses, including Emergency Time-Off of approximately $40M (pre-tax)
Year-To-Date 2nd Quarter, FY2022       
(in thousands, except per share data)       
    GAAP Results   
    24 Weeks Ended 24 Weeks Ended   
    February 12, 2022 February 13, 2021(2)   
Net sales $7,038,653  $6,065,078    
Cost of sales  3,328,267   2,830,078    
Gross profit  3,710,386   3,235,000    
Operating, SG&A expenses  2,329,141   2,138,008    
Operating profit (EBIT)  1,381,245   1,096,992    
Interest expense, net  85,755   92,191    
Income before taxes  1,295,490   1,004,801    
Income taxes(1)  268,500   216,422    
Net income $1,026,990  $788,379    
Net income per share:       
 Basic $49.49  $34.37    
 Diluted $48.03  $33.59    
Weighted average shares outstanding:       
 Basic  20,750   22,935    
 Diluted  21,383   23,473    
(1)The twenty-four weeks ended February 12, 2022 and the comparable prior year period include $34.7M and $19.2M in tax benefits from stock option exercises, respectively
(2)The twenty-four weeks ended February 13, 2021 was negatively impacted by pandemic related expenses, including Emergency Time-Off of approximately $45M (pre-tax)
Selected Balance Sheet Information       
(in thousands)       
    February 12, 2022 February 13, 2021 August 28, 2021 
Cash and cash equivalents $239,423  $1,026,164  $1,171,335  
Merchandise inventories  5,031,222   4,736,826   4,639,813  
Current assets  5,903,770   6,326,845   6,415,303  
Property and equipment, net  4,879,079   4,627,993   4,856,891  
Operating lease right-of-use assets  2,743,771   2,660,667   2,718,712  
Total assets  14,078,473   14,159,993   14,516,199  
Accounts payable  6,378,606   5,351,096   6,013,924  
Current liabilities  7,684,645   6,804,271   7,369,754  
Operating lease liabilities, less current portion  2,641,555   2,566,974   2,632,842  
Total debt  5,840,884   5,516,396   5,269,820  
Stockholders' deficit  (3,137,477)  (1,523,573)  (1,797,536) 
Working capital  (1,780,875)  (477,426)  (954,451) 

AutoZone's 2nd Quarter Highlights - Fiscal 2022        
Condensed Consolidated Statements of Operations           
Adjusted Debt / EBITDAR          
(in thousands, except adjusted debt to EBITDAR ratio) Trailing 4 Quarters      
     February 12, 2022 February 13, 2021      
Net income  $2,408,925  $1,871,731       
Add: Interest expense  188,901   205,278       
Income tax expense  630,954   529,701       
EBIT    3,228,780   2,606,710       
Add: Depreciation and amortization  422,938   401,073       
Rent expense(1)  354,410   335,969       
Share-based expense  62,672   46,906       
EBITDAR  $4,068,800  $3,390,658       
Debt   $5,840,884  $5,516,396       
Financing lease liabilities  272,719   225,411       
Add: Rent x 6(1)  2,126,460   2,015,814       
Adjusted debt $8,240,063  $7,757,621       
Adjusted debt to EBITDAR  2.0   2.3       
Adjusted Return on Invested Capital (ROIC)          
(in thousands, except ROIC)          
     Trailing 4 Quarters      
     February 12, 2022 February 13, 2021      
Net income  $2,408,925  $1,871,731       
Interest expense  188,901   205,278       
Rent expense(1)  354,410   335,969       
Tax effect(2)  (113,008)  (119,616)      
Adjusted after-tax return $2,839,228  $2,293,362       
Average debt(3) $5,433,252  $5,482,877       
Average stockholders' deficit(3)  (2,069,346)  (1,354,477)      
Add: Rent x 6(1)  2,126,460   2,015,814       
Average financing lease liabilities(3)  255,497   220,550       
Invested capital $5,745,863  $6,364,764       
Adjusted After-Tax ROIC  49.4%  36.0%      
(1) The table below outlines the calculation of rent expense and reconciles rent expense to total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the trailing four quarters ended February 12, 2022 and February 13, 2021
     Trailing 4 Quarters      
(in thousands)  February 12, 2022 February 13, 2021      
Total lease cost, per ASC 842, for the trailing four quarters $442,950  $418,100       
Less: Financing lease interest and amortization  (62,607)  (55,880)      
Less: Variable operating lease components, related to insurance and common area maintenance  (25,933)  (26,251)      
Rent expense for the trailing four quarters $354,410  $335,969       
(2) Effective tax rate over trailing four quarters ended February 12, 2022 and February 13, 2021 is 20.8% and 22.1%, respectively      
(3) All averages are computed based on trailing five quarter balances      
Other Selected Financial Information          
(in thousands)           
     February 12, 2022 February 13, 2021      
Cumulative share repurchases ($ since fiscal 1998) $28,192,426  $23,932,433       
Remaining share repurchase authorization ($)  957,574   717,567       
Cumulative share repurchases (shares since fiscal 1998)  151,586   149,033       
Shares outstanding, end of quarter  19,967   22,183       
     12 Weeks Ended 12 Weeks Ended  24 Weeks Ended 24 Weeks Ended 
     February 12, 2022 February 13, 2021  February 12, 2022 February 13, 2021 
Depreciation and amortization $99,692  $94,476   $199,282 $184,027 
Capital spending  105,874   125,608    208,143  238,644 

AutoZone's 2nd Quarter Highlights - Fiscal 2022        
Selected Operating Highlights            
Condensed Consolidated Statements of Operations          
Store Count & Square Footage            
     12 Weeks Ended  12 Weeks Ended  24 Weeks Ended  24 Weeks Ended 
     February 12, 2022  February 13, 2021  February 12, 2022  February 13, 2021 
 Beginning stores  6,066    5,924    6,051    5,885  
 Stores opened  26    27    41    66  
 Stores closed  (1)   -    (1)   -  
 Ending domestic stores  6,091    5,951    6,091    5,951  
 Relocated stores  1    1    4    5  
 Stores with commercial programs  5,233    5,088    5,233    5,088  
 Square footage (in thousands)  40,037    39,003    40,037    39,003  
 Beginning stores  666    621    664    621  
 Stores opened  3    7    5    7  
 Ending Mexico stores  669    628    669    628  
 Beginning stores  53    45    52    43  
 Stores opened  2    1    3    3  
 Ending Brazil stores  55    46    55    46  
Total     6,815    6,625    6,815    6,625  
 Square footage (in thousands)  45,433    44,021    45,433    44,021  
 Square footage per store  6,667    6,645    6,667    6,645  
Sales Statistics            
($ in thousands, except sales per average square foot)            
     12 Weeks Ended  12 Weeks Ended  Trailing 4 Quarters  Trailing 4 Quarters 
Total AutoZone Stores (Domestic, Mexico and Brazil)February 12, 2022  February 13, 2021  February 12, 2022  February 13, 2021 
 Sales per average store $486   $433   $2,282   $2,011  
 Sales per average square foot $73   $65   $343   $303  
Total Auto Parts (Domestic, Mexico and Brazil)             
 Total auto parts sales $3,306,223   $2,859,698   $15,332,148   $13,158,997  
 % Increase vs. LY  15.6%   16.0%   16.5%   11.0% 
Domestic Commercial             
 Total domestic commercial sales $843,889   $638,912   $3,755,003   $2,883,615  
 % Increase vs. LY  32.1%   14.7%   30.2%   7.6% 
 Average sales per program per week $13.5   $10.5   $14.0   $11.1  
 % Increase vs. LY  28.6%   11.7%   26.1%   6.7% 
All Other, including ALLDATA            
 All other sales $63,527   $51,120   $271,012   $231,348  
 % Increase vs. LY  24.3%   5.0%   17.1%   4.7% 
     12 Weeks Ended  12 Weeks Ended  24 Weeks Ended  24 Weeks Ended 
     February 12, 2022  February 13, 2021  February 12, 2022  February 13, 2021 
Domestic same store sales  13.8%   15.2%   13.7%   13.6% 
Inventory Statistics (Total Stores)            
     as of  as of       
     February 12, 2022  February 13, 2021       
 Accounts payable/inventory  126.8%   113.0%       
 ($ in thousands)             
 Inventory  $5,031,222   $4,736,826        
 Inventory per store  738    715        
 Net inventory (net of payables)  (1,347,384)   (614,270)       
 Net inventory / per store  (198)   (93)       
     Trailing 5 Quarters       
     February 12, 2022  February 13, 2021       
 Inventory turns  1.6 x  1.4 x