AutoZone (1AZO) AI Stock Analysis

Company Guidance

For FY 2027, AutoZone expects domestic same-store sales to be flat to up low single digits, driven by approximately 4% ticket growth; total domestic commercial sales growing high single to low double digits, with ticket average to grow in the roughly 4% range; and international comps of low to mid-single digit comps on a constant currency basis. The company expects to open approximately 400 stores, over 40 Mega Hubs, invest around $1.65 billion in CapEx, hold ROIC in the mid-30s area, and reduce the FY 2028 target from roughly 500 stores to 430, including roughly 300 stores in the U.S., 120 or so in Mexico, and roughly 20 or so in Brazil. For Q1 FY 2027, it expects same-store sales to be relatively flat, average ticket to remain around +5%, approximately 65 stores globally, SG&A growth of roughly 4% on a per store basis or 8.5%-9% on a total growth basis, $40 million in LIFO charges, approximately 22.7% all in for the tax rate, $114 million of interest expense, and foreign-exchange benefits of approximately $45 million to revenue, $14 million to EBIT, and $0.60 a share to EPS; for FY 2027, gross margins are expected to be flat to up 25 basis points on a GAAP basis, LIFO charges are modeled at $85 million to $90 million, and SG&A is expected to grow roughly 3% per store or approximately 8% on a total growth basis.