AutoZone 4Q Profit Slips, Shares Tumble

BREE FOWLER

NEW YORK (AP) — Auto parts retailer AutoZone Inc. said Wednesday its fiscal fourth-quarter profit fell 3.1 percent, citing tough comparisons to a prior-year period that included an extra week of sales. Its shares dropped more than 7 percent.

Bill Rhodes, AutoZone's chairman, president and chief executive, said consumers remained focused on trying to save money during the quarter by spending more on basic maintenance in order to keep their cars on the road longer.

Rhodes added that he expects the same trend to continue for the near future.

"This quarter we continued our focus on the basics," he told investors in a conference call. "And we continue to believe we're well positioned to take advantage of opportunities as we head into the new fiscal year."

For the quarter ended Aug. 29, the Memphis, Tenn.-based company earned $236.1 million, or $4.43 per share, down from $243.7 million, or $3.88 per share, a year ago. The per-share figures rose because it had fewer shares outstanding in the latest period.

Analysts polled by Thomson Reuters expected a profit of $4.45 per share for the latest quarter.