AutoZone (AZO) Q4 1999 earnings summary

Executive summary

• Leading specialty auto-parts retailer focused primarily on DIY customers; operated 2,711 domestic stores and six in Mexico at Aug. 28, 1999.

• FY1999 net sales were $4.116 billion, versus $1.8 billion in FY1995; continued growth depended on profitable store openings and sales gains at existing stores.

• Business also included 46 TruckPro stores and ALLDATA automotive diagnostic and repair information software.

Financial highlights

• FY1999 net sales were $4,116.4 million; the financial data schedule reports net income of $244.8 million.

• Financial data schedule lists EPS of $1.64 and $1.63; the excerpt does not identify the respective EPS bases.

Outlook and guidance

• Growth outlook relied on profitable expansion in existing and new markets and continued comparable-store sales gains; no assurance was given on execution or results.

• Historic store-count growth averaged 24% annually over five fiscal years, but that pace was not expected to continue.

• International expansion, starting with Mexico in FY1999, offered potential but carried execution risk given limited operating experience outside the U.S.