AutoZone Q4 Miss, LIFO Pressures Margins

AutoZone reported fiscal Q4 adjusted EPS of $48.71, missing consensus, and revenue of $6.24 billion (about +0.6% year-over-year), with same-store sales up roughly 4.5–5.1%. Tariff-driven LIFO non-cash charges (about $80 million) and cost inflation pressured gross margins, which fell roughly 98 basis points to 51.5%, while SG&A rose. Management opened 141 stores in the quarter (bringing total locations to about 7,657), increased inventory and said it will “aggressively” pursue new openings and Pro/commercial growth. Analysts largely maintained Buy or Strong Buy ratings while trimming price targets—Raymond James to $4,800 and others into the high-$4,000s—viewing LIFO as a non-cash headwind but noting core margin resilience and Pro momentum. Shares traded down modestly in premarket after the miss but remained roughly +28–29% year-to-date.