An Inside Look at Retail Earnings: Start Your Engines – Advance Auto Parts and Autozone (AAP, AZO)
Tuesday kicked off another round of big retail earnings with auto retailers Advance Auto Parts and Autozone announcing their results before today’s open.
American automotive aftermarket parts provider, Advance Auto Parts Inc. (AAP) beat earnings and revenue consensus reporting Q4 EPS of $2.88 vs Factset $2.41 while Q4 revenues came in at $2.47B vs Factset $2.42B. FY 2023 guidance was light on EPS at $10.20-$11.20 vs Factset $12.48 but inline on revenue $11.4B-$11.6B vs Factset $11.33B.
American automotive aftermarket parts provider, Autozone Inc. (AZO) also beat earnings and revenue consensus reporting Q2 EPS of $24.64 vs Factset $21.96 while Q2 revenues came in at $3.69B vs Factset $3.56B. FY 2023 guidance was light on EPS at $10.20-$11.20 vs Factset $12.48 but inline on revenue $11.4B-$11.6B vs Factset $11.33B.
Both companies have cited positive quarterly results adding to an overall encouraging report for retail auto peer group earnings season. Other highlights and themes below:
- AAP announced plans for President and CEO, Tom Greco to retire at the end of the year.
- AAP expects to see further improvements in inventory availability throughout 2023 which is the single most important driver in acceleration of topline growth.
- While AZO beat quarterly estimates, they are still seeing higher freight costs.
- Consumers are continuing to keep older cars on the road longer.