AutoZone Roars Back to Life: Q3 2025 Highlights
AutoZone, one of the largest auto parts retailers in the United States, has reported a stellar performance in its third quarter of 2025. The company's sales and earnings have shown significant improvement, driven by its focus on delivering outstanding customer service, expanding parts availability, and improving speed of delivery.
In a conference call to discuss the quarterly results, AutoZone's CEO Philip Daniele highlighted the key highlights of the quarter. Domestic commercial sales grew 10.7%, marking the company's first double-digit quarter for commercial growth since the second quarter of FY '23. The company also cleared another milestone by eclipsing the $5 billion sales mark on commercial on a rolling 4-quarter basis.
Domestic retail comp was just north of 3%, which is the best retail growth reported by AutoZone since the second quarter of FY '22. International constant currency comp remained solid, up 8.1% for the quarter. The company's focus on WOW customer service has paid off, with total sales growing 5.4% while earnings per share decreased 3.6%
AutoZone's domestic DIY same-store sales growth was 3%, while its domestic commercial sales grew 10.7%. International same-store sales were 8.1% on a constant currency basis, but the stronger U.S. dollar had a negative impact on the company's reported sales, operating profit, and EPS.
CEO Philip Daniele emphasized that the initiatives implemented to improve execution, expand parts availability, and speed up delivery have shown significant improvement in year-over-year sales growth. The company is confident that these efforts will drive strong results in future quarters.
The conference call also touched on the quarterly cadence, which was somewhat predictable due to the tax refund season's normal impact on sales. Domestic same-store sales cadence was 6.7% in the first 4 weeks of the quarter and 3.1% over the last 4 weeks, driven by the domestic DIY business.
AutoZone's Q3 2025 results are a testament to the company's commitment to delivering outstanding customer service and its focus on driving sales growth through execution and strategic initiatives. As the company looks ahead to the fourth quarter, investors and analysts will be keenly watching for further developments in this exciting space.
