AutoZone (AZO) Q4 2000 earnings summary

Executive summary

• Specialty auto-parts retailer operated 2,915 U.S. stores and 13 stores in Mexico at Aug. 26, 2000; also operated TruckPro and ALLDATA businesses.

• Strategy centered on customer service, broad parts selection, everyday low pricing, commercial sales and continued store expansion.

Financial highlights

• Net sales increased from $2.2 billion in FY1996 to $4.5 billion in FY2000.

• Store count growth moderated from historical expansion; 208 new domestic auto-parts stores opened in FY2000, with 2,915 domestic stores at year-end.

Outlook and guidance

• Future performance depends on profitable new-store openings and continued comparable-store sales increases; no assurance was given that either can be sustained.

• Expansion opportunities identified in both unserved markets and markets where a larger presence is possible, including international markets.