Autozone Inc 10-Q for FY2025 Q3

Autozone Inc (AZO)

10-Q 2025-06-13 For: 2025-05-10

Added on April 07, 2026

About this 10-Q

Autozone Inc filed this 10-Q on June 13, 2025, covering the quarter ended May 10, 2025 (FY2025 Q3).

Headline figures

Quarter ended May 10, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.46B; up 5.4% from $4.24B a year earlier
Net income: $608.44M; down 6.6% from net income of $651.73M a year earlier
Diluted EPS: $35.36; down 3.6% from $36.69 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


☒		Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the quarterly period ended May 10, 2025 or

☐		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the transition period from _______ to ________.

		Commission file number 1-10714


Nevada	62-1482048
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)


123 South Front Street, Memphis, Tennessee	38103
(Address of principal executive offices)	(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock ($0.01 par value)		AZO		New York Stock Exchange


Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐


PART I.		FINANCIAL INFORMATION	3
	Item 1.	Financial Statements	3
		CONDENSED CONSOLIDATED BALANCE SHEETS	3
		CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5
		CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT	6
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	17
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
	Item 4.	Controls and Procedures	26
PART II.		OTHER INFORMATION	27
	Item 1.	Legal Proceedings	27
	Item 1A.	Risk Factors	27
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
	Item 3.	Defaults Upon Senior Securities	27
	Item 4.	Mine Safety Disclosures	27
	Item 5.	Other Information	27
	Item 6.	Exhibits	27
SIGNATURES			29


	May 10,		August 31,
(in thousands)	2025		2024

Assets
Current assets:
Cash and cash equivalents	$	268,625	$	298,172
Accounts receivable		588,514		545,575
Merchandise inventories		6,822,881		6,155,218
Other current assets		305,691		307,794
Total current assets		7,985,711		7,306,759

Property and equipment:
Property and equipment		12,128,141		11,305,125
Less: Accumulated depreciation and amortization		(5,400,923)		(5,121,586)
		6,727,218		6,183,539

Operating lease right-of-use assets		3,145,590		3,057,780
Goodwill		302,645		302,645
Deferred income taxes		100,910		83,689
Other long-term assets		359,909		242,126
Total long-term assets		3,909,054		3,686,240
Total assets	$	18,621,983	$	17,176,538

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	7,887,417	$	7,355,701
Current portion of operating lease liabilities		314,919		266,855
Accrued expenses and other		1,095,921		1,060,746
Income taxes payable		167,278		30,941
Total current liabilities		9,465,535		8,714,243

Long-term debt		8,853,110		9,024,381
Operating lease liabilities, less current portion		3,020,664		2,960,174
Deferred income taxes		412,429		447,067
Other long-term liabilities		844,650		780,287

Commitments and contingencies		—		—

Stockholders’ deficit:
Preferred stock, authorized 1,000 shares; no shares issued		—		—
Common stock, par value $.01 per share, authorized 200,000 shares; 16,869 shares issued and 16,724 shares outstanding as of May 10, 2025; 17,451 shares issued and 16,926 shares outstanding as of August 31, 2024		169		175
Additional paid-in capital		1,745,937		1,621,553
Retained deficit		(4,812,803)		(4,424,982)
Accumulated other comprehensive loss		(357,051)		(361,618)
Treasury stock, at cost		(550,657)		(1,584,742)
Total stockholders’ deficit		(3,974,405)		(4,749,614)
Total liabilities and stockholders' deficit	$	18,621,983	$	17,176,538


	Twelve Weeks Ended				Thirty-Six Weeks Ended
	May 10,		May 4,		May 10,		May 4,
(in thousands, except per share data)	2025		2024		2025		2024

Net sales	$	4,464,339	$	4,235,485	$	12,695,991	$	12,284,888
Cost of sales, including warehouse and delivery expenses		2,110,816		1,969,963		5,946,010		5,725,698
Gross profit		2,353,523		2,265,522		6,749,981		6,559,190
Operating, selling, general and administrative expenses		1,487,349		1,365,341		4,335,891		4,067,163
Operating profit		866,174		900,181		2,414,090		2,492,027
Interest expense, net		111,285		104,422		327,736		298,426
Income before income taxes		754,889		795,759		2,086,354		2,193,601
Income tax expense		146,449		144,033		425,057		433,382
Net income	$	608,440	$	651,726	$	1,661,297	$	1,760,219

Weighted average shares for basic earnings per share		16,746		17,273		16,815		17,434
Effect of dilutive stock equivalents		461		488		459		507
Weighted average shares for diluted earnings per share		17,207		17,761		17,274		17,941

Basic earnings per share	$	36.33	$	37.73	$	98.80	$	100.96
Diluted earnings per share	$	35.36	$	36.69	$	96.17	$	98.11


	Twelve Weeks Ended May 10, 2025
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at February 15, 2025	16,822	$	168	$	1,671,200	$	(5,421,243)	$	(407,589)	$	(300,309)	$	(4,457,773)
Net income	—		—		—		608,440		—		—		608,440
Total other comprehensive income	—		—		—		—		50,538		—		50,538
Purchase of 70 shares of treasury stock	—		—		—		—		—		(250,348)		(250,348)
Issuance of common stock under stock options and stock purchase plans	47		1		46,706		—		—		—		46,707
Share-based compensation expense	—		—		28,031		—		—		—		28,031
Balance at May 10, 2025	16,869	$	169	$	1,745,937	$	(4,812,803)	$	(357,051)	$	(550,657)	$	(3,974,405)


	Twelve Weeks Ended May 4, 2024
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at February 10, 2024	17,351	$	174	$	1,485,789	$	(5,978,916)	$	(204,899)	$	(139,469)	$	(4,837,321)
Net income	—		—		—		651,726		—		—		651,726
Total other comprehensive income	—		—		—		—		2,000		—		2,000
Purchase of 242 shares of treasury stock	—		—		—		—		—		(734,713)		(734,713)
Issuance of common stock under stock options and stock purchase plans	74		—		56,028		—		—		—		56,028
Share-based compensation expense	—		—		24,043		—		—		—		24,043
Balance at May 4, 2024	17,425	$	174	$	1,565,860	$	(5,327,190)	$	(202,899)	$	(874,182)	$	(4,838,237)


	Thirty-Six Weeks Ended May 10, 2025
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 31, 2024	17,451	$	175	$	1,621,553	$	(4,424,982)	$	(361,618)	$	(1,584,742)	$	(4,749,614)
Net income	—		—		—		1,661,297		—		—		1,661,297
Total other comprehensive income	—		—		—		—		4,567		—		4,567
Retirement of treasury shares	(710)		(7)		(69,877)		(2,049,118)		—		2,119,002		—
Purchase of 330 shares of treasury stock	—		—		—		—		—		(1,084,917)		(1,084,917)
Issuance of common stock under stock options and stock purchase plans	128		1		111,007		—		—		—		111,008
Share-based compensation expense	—		—		83,254		—		—		—		83,254
Balance at May 10, 2025	16,869	$	169	$	1,745,937	$	(4,812,803)	$	(357,051)	$	(550,657)	$	(3,974,405)


	Thirty-Six Weeks Ended May 4, 2024
								Accumulated
	Common			Additional				Other
	Shares	Common		Paid-in		Retained		Comprehensive		Treasury
(in thousands)	Issued	Stock		Capital		Deficit		Loss		Stock		Total

Balance at August 26, 2023	18,936	$	189	$	1,484,992	$	(2,959,278)	$	(190,836)	$	(2,684,961)	$	(4,349,894)
Net income	—		—		—		1,760,219		—		—		1,760,219
Total other comprehensive loss	—		—		—		—		(12,063)		—		(12,063)
Retirement of treasury shares	(1,703)		(17)		(142,391)		(4,128,131)		—		4,270,539		—
Purchase of 905 shares of treasury stock	—		—		—		—		—		(2,459,760)		(2,459,760)
Issuance of common stock under stock options and stock purchase plans	192		2		154,365		—		—		—		154,367
Share-based compensation expense	—		—		68,894		—		—		—		68,894
Balance at May 4, 2024	17,425	$	174	$	1,565,860	$	(5,327,190)	$	(202,899)	$	(874,182)	$	(4,838,237)


	May 10, 2025
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	9,909	$	9,084	$	—	$	18,993
Other long-term assets		50,646		51,465		—		102,111
	$	60,555	$	60,549	$	—	$	121,104


	August 31, 2024
(in thousands)	Level 1		Level 2		Level 3		Fair Value

Other current assets	$	26,697	$	11,734	$	—	$	38,431
Other long-term assets		27,031		56,696		—		83,727
	$	53,728	$	68,430	$	—	$	122,158


	May 10, 2025
	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(in thousands)	Basis		Gains		Losses		Value

Corporate debt securities	$	26,081	$	92	$	(195)	$	25,978
Government bonds		58,790		501		(423)		58,868
Mortgage-backed securities		22,432		108		(215)		22,325
Asset-backed securities and other		13,912		40		(19)		13,933
	$	121,215	$	741	$	(852)	$	121,104


	May 10, 2025
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	20,607	$	18,993
Due after one year through five years		45,465		47,256
Due after five years through ten years		38,753		38,629
Due after ten years		16,390		16,226
	$	121,215	$	121,104


	May 10,		August 31,
(in thousands)	2025		2024

3.250% Senior Notes due April 2025, effective interest rate 3.36%	$	—	$	400,000
3.625% Senior Notes due April 2025, effective interest rate 3.78%		—		500,000
3.125% Senior Notes due April 2026, effective interest rate 3.28%		400,000		400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%		450,000		450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%		600,000		600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%		450,000		450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%		500,000		500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%		450,000		450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%		600,000		600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%		750,000		750,000
5.125% Senior Notes due June 2030, effective interest rate 5.14%		500,000		—
1.650% Senior Notes due January 2031, effective interest rate 2.19%		600,000		600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%		750,000		750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%		550,000		550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%		300,000		300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%		500,000		500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%		700,000		700,000
Commercial paper, weighted average interest rate 4.56% at May 10, 2025 and 5.40% at August 31, 2024		805,500		580,000
Total debt before discounts and debt issuance costs		8,905,500		9,080,000
Less: Discounts and debt issuance costs		52,390		55,619
Long-term debt	$	8,853,110	$	9,024,381


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at February 15, 2025	$	(397,164)	$	(587)	$	(9,838)	$	(407,589)
Other comprehensive income before reclassifications⁽²⁾		49,636		511		—		50,147
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		(13)		404		391
Balance at May 10, 2025	$	(347,528)	$	(89)	$	(9,434)	$	(357,051)


			Net
	Foreign		Unrealized
	Currency		Gain (Loss)
(in thousands)	and Other⁽¹⁾		on Securities		Derivatives		Total

Balance at February 10, 2024	$	(192,439)	$	(839)	$	(11,621)	$	(204,899)
Other comprehensive income (loss) before reclassifications⁽²⁾		1,630		(34)		—		1,596
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾		—		—		404		404
Balance at May 4, 2024	$	(190,809)	$	(873)	$	(11,217)	$	(202,899)


	Twelve Weeks Ended
						Constant Currency⁽¹⁾
		May 10, 2025		May 4, 2024		May 10, 2025		May 4, 2024
Domestic		5.0	%	0.0	%	5.0	%	0.0	%
International		(9.2	%)	18.1	%	8.1	%	9.3	%
Total Company		3.2	%	1.9	%	5.4	%	0.9	%


	A		B		A-B=C		D		C+D
	Fiscal Year		Thirty-Six		Seventeen		Thirty-Six		Trailing Four
	Ended		Weeks Ended		Weeks Ended		Weeks Ended		Quarters Ended
	August 31,		May 4,		August 31,		May 10,		May 10,
(in thousands, except percentage)	2024		2024		2024		2025		2025

Net income	$	2,662,427	$	1,760,219	$	902,208	$	1,661,297	$	2,563,505
Adjustments:
Interest expense		451,578		298,426		153,152		327,736		480,888
Rent expense⁽¹⁾		447,693		300,460		147,233		318,106		465,339
Tax effect⁽²⁾		(185,250)		(123,371)		(61,879)		(133,043)		(194,922)
Adjusted after-tax return	$	3,376,448	$	2,235,734	$	1,140,714	$	2,174,096	$	3,314,810

Average debt⁽³⁾									$	8,987,683
Average stockholders’ deficit⁽³⁾										(4,538,590)
Add: Rent x 6⁽¹⁾										2,792,034
Average finance lease liabilities⁽³⁾										385,328
Invested capital									$	7,626,455

Adjusted after-tax ROIC										43.5%


	Trailing Four Quarters Ended
(in thousands)	May 10, 2025		May 4, 2024

Total lease cost, per ASC 842	$	625,740	$	558,627
Less: Finance lease interest and amortization		(117,287)		(97,717)
Less: Variable operating lease components, related to insurance and common area maintenance		(43,114)		(35,619)
Rent expense	$	465,339	$	425,291


				Total Number of	Maximum Dollar
				Shares Purchased as	Value that May Yet
	Total Number	Average		Part of Publicly	Be Purchased Under
	of Shares	Price Paid		Announced Plans or	the Plans or
Period	Purchased	per Share		Programs	Programs

February 16, 2025 to March 15, 2025	47,128	$	3,508.20	47,128	$	1,164,065,475
March 16, 2025 to April 12, 2025	22,987		3,698.31	22,987		1,079,052,371
April 13, 2025 to May 10, 2025	—		—	—		1,079,052,371
Total	70,115	$	3,570.53	70,115	$	1,079,052,371

		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.
3.1		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.

3.2		Ninth Amended and Restated By-Laws of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated April 1, 2025.


4.1		Officers’ Certificate dated April 14, 2025, pursuant to Section 3.2 of the Indenture dated August 8, 2003, setting forth the terms of the 5.125% Senior Notes due 2030. Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K dated April 14, 2025.
4.2		Form of 5.125% Senior Notes due 2030. Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K dated April 14, 2025.

10.1		Second Amendment to Credit Agreement, dated as of April 10, 2025, among AutoZone, Inc. as borrower, the lenders party thereto, Bank of America, N.A., as administrative agent, and JPMorgan Chase Bank, N.A., as syndication agent.

15.1*		Letter Regarding Unaudited Interim Financial Statements.

31.1		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101. INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended May 10, 2025, has been formatted in Inline XBRL.


	AUTOZONE, INC.

	By:	/s/ JAMERE JACKSON
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)


	By:	/s/ J. SCOTT MURPHY
	J. Scott Murphy
	Vice President, Controller (Principal Accounting Officer)

Dated: June 13, 2025


June 13, 2025

	/s/ PHILIP B. DANIELE, III
	Philip B. Daniele, III
	President and Chief Executive Officer
	(Principal Executive Officer)