Sep 22, 2026 earnings call — Record store expansion and FY2027 outlook
AutoZone opened a record 374 new stores in FY 2026.
Revenue $6.6B (est $6.7B) · EPS $56.05 (est $54.08)
Key quotes
"This year's total of 374 stores is the most ever in a fiscal year."
"There are approximately 2,000 commercial programs that are linked to a Mega Hub network. These programs sell 16% more annually than the balance of the commercial programs in the chain."
"We saw mid-single digit like-for-like same-SKU inflation for the quarter, which contributed to our DIY average ticket being up roughly 5%, which was offset by traffic declines."
Analyst Q&A 8
IEEPA tariff refund timing
Q (Brett Jordan · Jefferies): Is most of the IEEPA refund coming in the fourth quarter and will supplier rebates trickle into 2027?
A: Management said most of the refund arrived in the fourth quarter and the remainder should trickle into fiscal 2027 tied to sold inventory. They specified about a little over $100 million was in IEEPA tariffs.
"As we talked about, we had a little over $100 million that were in IEEPA tariffs." — Jamere Jackson (CFO)
Comp math and market share
Q (Simeon Gutman · Morgan Stanley): Does the sum-of-parts math on retail and commercial imply the comp guidance range, and are you satisfied with market share performance?
A: Management said the comp math was in the right area and they're calling the business based on elevated ticket inflation and current trends. They said they are gaining share in DIY and commercial but are never satisfied and will keep investing to grow share domestically and internationally.
"But we believe in this environment on both the DIY side, we are continuing to gain market share." — Phil Daniele
Q1 guidance, weather, and momentum
Q (Christopher Horvers · JPMorgan): Can you confirm the Q1 assumptions (DIY flat, commercial strong) and how weather or conservatism affect the guide?
A: Management said they exited the quarter with a rebound and they like the momentum into Q1, with commercial exiting well north of 9%. They noted weather looks normal to potentially tougher this winter, which they can't predict but can operate in.
"So we like the momentum that we have going into the first quarter on DIY and certainly commercial exit and well north of 9% is something that we would expect to continue." — Jamere Jackson (CFO)
DIY transactions and freight cost impact
Q (Steven Zaccone · Citi): How are DIY transactions trending and will higher freight push higher same-SKU inflation to customers?
A: Management said transactions were softer early in the quarter but improved late in Q4 and they expect moderation toward normal traffic rates. They acknowledged higher gas raises freight costs and is inflationary, but they expect to manage transportation costs through their supply chain and merchants.
"But our supply chain teams and our merchants do a great job of negotiating our transportation costs, and we expect to be able to manage that well." — Phil Daniele
Returns on recent investments and P&L flexibility
Q (Michael Lasser · UBS): What returns have investments delivered and can you manage the P&L if comps are weaker than expected?
A: Management said they are pleased with investments in supply chain, operations and new stores and that new stores are maturing slightly ahead of plan. They also said they expect same-SKU inflation around 4% and believe transactions will moderate toward historical norms, giving them ability to manage SG&A and the P&L as needed.
"And we think that inflation rate for the year is going to be roughly 4%, maybe slightly higher, on both DIY and commercial, which kind of gets you to those slightly improved comps from where we were in Q4." — Phil Daniele
Commercial growth and tariff effects on margins
Q (Steven Forbes · Guggenheim): How does commercial growth ramp by year and is FIFO gross margin outlook already including tariff refund effects?
A: Management said commercial gets a big acceleration in the first one to two years, driven mainly by UDS customers, and Mega Hubs improve delivery and returns. They also said tariff refunds were deflationary and they expect to lap those tariff benefits rather than call them out in future margin guidance.
"So, we're expecting to lap those tariff benefits and not have that be a call-out." — Phil Daniele
Mega Hub lift and inflation elasticity
Q (Seth Sigman · Barclays): Is the Mega Hub sales lift stable and do you expect inflation elasticity to be more favorable in 2027?
A: Management said the Mega Hub lift has been consistent and expanding the network toward 300 Mega Hubs should keep or improve that profile. They also said elasticity may be more favorable as they lap prior tariffs and noted ticket averages are up 9% on a 2-year basis, so normalization should help transactions.
"If you just look at ticket averages for us, they are up 9% on a 2-year stack basis." — Jamere Jackson (CFO)
New store lift and 2028 opening plans
Q (Scot Ciccarelli · Truist): How much do new stores boost comps as they roll into the base, and have you changed domestic opening plans for 2028?
A: Management said newer stores have higher comps but, given the large base, the net impact is modest and they expect mature stores to also improve. They confirmed plans to open roughly 300 U.S. stores, about 120 in Mexico and roughly 20 in Brazil, targeting about 430 net new stores annually.
"We still think we'll get to roughly that 300 stores in the U.S. We'll be in that range of 120 or so in Mexico and roughly 20 or so in Brazil." — Phil Daniele