AutoZone, Inc. Q2 FY2026 earnings call

Thank every AutoZoner for putting customers first. Sales grew +8.1%, EPS down 2.3% but up 7.1% excluding LIFO charge. Domestic same store sales grew 3.4%, DIY up 1.5%, commercial up 9.8%. International same-store sales up 2.5% on constant currency. Weather impacted Q2, especially last four weeks. Opened 64 stores globally. Discussed traffic, ticket growth, and growth initiatives.

Total sales grew +8.1% in the second quarter. Excluding a non-cash $59 million LIFO charge, EPS would have been up 7.1% vs last year's Q2. Domestic same store sales grew 3.4%, with DIY up 1.5% and commercial up 9.8%. International same-store sales grew 2.5% on a constant currency basis.

Expect same-skew inflation to continue increasing through third quarter and most of fourth quarter. Anticipate top line and EBIT growth to accelerate as stores mature. Plan to invest ~$1.6 billion in CapEx this year for store growth and supply chain.

Weather patterns can impact sales. Tariffs continue to affect costs. Mexico's slow economic growth poses challenges for international business.

Q: Could you talk a bit more about your same-skew inflation expectation?

A: We believe it will continue to increase over the third quarter and through most of the fourth quarter...

Q: How do you assess the investment cycle?

A: We're in the middle innings of ramping store counts...