Just a few follow up thoughts from listening to the AutoZone call (a few times.) First, we should point out comparable EPS (adjusted for the new stock option rules) was $1.92 versus $1.86, comparable net income was essentially unchanged at $147 million, and comparable operating margins were 18.2% versus 19.4%. Same-store sales were up 2.1%, the best in a couple years, which management indicated was more due to ticket than traffic. The company also benefited from a lower tax rate (36.7% versus 37.2%.)

Looking forward, management indicated they started their investments (for future growth) in 4Q of last year, but they really don’t have even comparisons until 1Q/2Q of next year. As such, while gross margins ...

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Related Companies: AutoZone