AutoZone Credits Supply Chain Efforts to Sales

AutoZone noticed its gross sales improve through the fiscal fourth quarter of the 12 months, a development the corporate’s chief govt attributed to the corporate’s provide chain initiatives.

Speaking to buyers throughout an earnings name Monday (Sept. 19), AutoZone CEO Bill Rhodes famous the corporate’s expanded hub and mega-hub rollouts and its rising distribution heart footprint, opening two facilities within the U.S. and one in Mexico.

See additionally: From Aging Cars to EVs to Record Gas Prices, Auto Parts Retailers Face Big Changes

These openings, Rhodes mentioned, contribute to his firm’s purpose of “carrying more product closer and closer to the customer.”

AutoZone reported web gross sales of $5.3 billion for the quarter, up 8.9% from the fourth quarter of 2021. Domestic same-store gross sales rose by 6.2% for the quarter, in keeping with a news release.

Rhodes informed buyers that firm officers had final 12 months focused business gross sales of $4 billion. “That lofty goal, ultimately, wasn’t nearly lofty enough,” he mentioned.

Rhodes mentioned various elements drove gross sales through the quarter, together with improved satellite tv for pc retailer stock and supply occasions, the recognition of the corporate’s Duralast model, and — to a lesser extent — the recent summer time climate.

“Extreme weather drives parts failure and maintenance,” he mentioned. “Heat leads to failure.”

Learn extra: Auto Parts Stores Add Digital Tools as More Cars Return to the Road

Earlier this 12 months, Rhodes mentioned the corporate was seeing demand for auto elements as a result of rising price of latest and used automobiles, getting older vehicles — the typical automobile on the street is now 12 years previous — and folks driving extra miles.

“If you look at the used car price dynamic just in general, those higher residual values are actually encouraging our customers to invest in maintaining their vehicles because they’re comfortable that the value is actually holding,” Rhodes mentioned.

Meanwhile, the corporate continued to extend its retailer footprint. Between August 2021 and August 2022, AutoZone opened 118 new shops within the U.S., 39 new shops in Mexico, and 20 in Brazil, bringing the corporate’s retailer depend to six,943.

For all PYMNTS retail protection, subscribe to the each day Retail Newsletter.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of two,124 US customers exhibits that whereas two-thirds of customers have used FinTechs for some side of banking providers, simply 9.3% name them their main financial institution.