(Reuters) – Automotive parts retailer AutoZone missed estimates for first-quarter profit and revenue on Tuesday, hurt by higher raw material prices and a stronger dollar. Auto parts retailers have benefited from do-it-yourself automotive parts demand from consumers buying more to keep their ageing cars on the roads amid a pricey new car market. Although, a […]
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AutoZone misses first-quarter profit, revenue estimates
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(Reuters) – Automotive parts retailer AutoZone missed estimates for first-quarter profit and revenue on Tuesday, hurt by higher raw material prices and a stronger dollar.
Auto parts retailers have benefited from do-it-yourself automotive parts demand from consumers buying more to keep their ageing cars on the roads amid a pricey new car market.
Although, a rise in raw materials prices has impacted prices for a range of products including automotive components.
Additionally, a looming threat from U.S. President-elect Donald Trump’s proposed tariff hikes on imports might also hurt prices of automotive parts.
“If we get tariffs, we will pass those tariff costs back to the consumer, and we’ll pass them through,” AutoZone CEO Philip Daniele had said in September.
Quarterly net sales at the retailer rose 2% to about $4.28 billion, marginally lower than estimates of about $4.3 billion, according to data compiled by LSEG.
Domestic same-store sales in the quarter ended Nov. 23 rose 0.3%, compared with an increase of 1.2% a year ago.
The company’s net income was $564.9 million, or $32.52 per share, in the quarter, compared with $593.5 million, or $32.55 per share, a year ago. Analysts had expected $33.55 per share.
(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel)