AutoZone’s second-quarter profit falls after inflationary headwinds

March 3 (Reuters) – AutoZone reported a fall in second-quarter profit on Tuesday, as inflationary headwinds dented the auto parts retailer’s margins.

Shares of the company fell about 6% in premarket trading following the results.

Tariffs, winter storms and a bumpy vehicle market pressured the Memphis, Tennessee-based auto parts retailer over the past year, despite a steady demand from consumers for auto parts.

AutoZone said its domestic segment benefited from higher Do-It-Yourself and commercial sales during the second quarter, despite winter storms in January that caused disruptions.

Its overall sales in the quarter ended February 12 rose 8.15% to roughly $4.27 billion from a year earlier.

Analysts on average expected the company to report quarterly sales of $4.31 billion, according to data compiled by LSEG.

AutoZone’s quarterly net income fell to $469 million, or $27.63 per share, from $488 million, or $28.29, a year ago. Analysts expected a quarterly profit of $27.13 per share.

(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas)

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