(Reuters) -AutoZone Inc on Tuesday reported a 6.6% drop in quarterly profit, as softening demand and currency fluctuations weighed on the auto parts retailer’s margins. The Memphis, Tennessee-based auto parts retailer has been under pressure from consumers pulling back on buying certain parts, pressuring margins. Its domestic same-store sales rose 5% in the third quarter […]
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AutoZone’s third quarter profit falls 6.6% on currency headwinds
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(Reuters) -AutoZone Inc on Tuesday reported a 6.6% drop in quarterly profit, as softening demand and currency fluctuations weighed on the auto parts retailer’s margins.
The Memphis, Tennessee-based auto parts retailer has been under pressure from consumers pulling back on buying certain parts, pressuring margins.
Its domestic same-store sales rose 5% in the third quarter ended May 10, compared to a flat growth last year, aided by sustained demand from commercial customers.
The industry has also been dealing with higher supply chain costs due to U.S. President Donald Trump’s tariffs, while consumers have also tightened their budgets amid concerns of a recession.
Trump’s shifting tariff policies and trade war rhetoric have also led to volatility in global markets, and put pressure on the U.S. dollar.
AutoZone’s quarterly net sales rose 5.4% to about $4.5 billion, topping estimates of about $4.36 billion, according to data compiled by LSEG.
The company’s net income fell to $608.4 million, or $35.36 per share, in the third quarter, compared with $651.7 million, or $36.69 per share, a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Leroy Leo)