AutoZone Authorizes Additional Stock Repurchase

Rhea-AI Summary

AutoZone (NYSE: AZO) has authorized an additional $2.5 billion share repurchase, increasing total repurchases to $33.7 billion since 1998. This decision reflects the company's strong financial performance, enabling it to return significant cash to shareholders while maintaining investment-grade credit ratings. CFO Jamere Jackson emphasized the company's commitment to disciplined capital allocation to enhance shareholder returns. As of August 27, 2022, AutoZone operates 6,943 stores across the U.S., Mexico, and Brazil, offering extensive automotive products.

Positive

• Authorization of an additional $2.5 billion share repurchase, enhancing shareholder value.
• Total share repurchases since 1998 now amount to $33.7 billion, indicating strong capital return strategy.
• Strong financial performance supports ongoing cash returns to shareholders while maintaining liquidity.

Negative

• None.

MEMPHIS, Tenn., Oct. 04, 2022 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), today announced its Board of Directors authorized the repurchase of an additional $2.5 billion of the Company’s common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone’s Board of Directors has authorized $33.7 billion in share repurchases.

“Our strong financial performance allows us to grow our business, return meaningful amounts of cash to our shareholders and maintain our investment grade credit ratings,” said Jamere Jackson, Chief Financial Officer and Executive Vice President – Finance, and Store Development. “We remain committed to our disciplined capital allocation policy to drive growth and enhance shareholder returns while maintaining adequate liquidity.”

About AutoZone:

As of August 27, 2022, the Company had 6,168 stores in the U.S., 703 in Mexico and 72 in Brazil for a total store count of 6,943.

AutoZone is the leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts. We also have commercial programs in all stores in Mexico and Brazil. AutoZone also sells the ALLDATA brand automotive diagnostic, repair and shop management software through www.alldata.com. Additionally, we sell automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com. We also provide product information on our Duralast branded products through www.duralastparts.com. AutoZone does not derive revenue from automotive repair or installation.

Contact Information:

Media: David McKinney, 901-495-7951, david.mckinney@autozone.com

Financial: Brian Campbell, 901-495-7005, brian.campbell@autozone.com

FAQ

What is the recent share repurchase announcement from AutoZone (AZO)?

AutoZone has authorized an additional $2.5 billion for share repurchase, totaling $33.7 billion since 1998.

How does the new share repurchase impact AutoZone's stock price?

The $2.5 billion repurchase is expected to enhance shareholder value and may positively impact stock price.

What was the reason behind AutoZone's decision to increase its share repurchase program?

The decision is driven by strong financial performance and a commitment to returning cash to shareholders.

How many stores does AutoZone operate as of August 2022?

AutoZone operates a total of 6,943 stores in the U.S., Mexico, and Brazil.