AutoZone put a foot on the brakes after reporting earnings ahead of the opening bell Tuesday.
The automotive parts retailer reported diluted earnings per share of $14.39 on net sales of $2.78 billion.
While stores remained open as an essential business during the coronavirus pandemic shutdown, AutoZone saw comparable same store sales decrease 1.0% in the third quarter. Though the company said most stores have since returned to normal operating hours, stores operated under reduced hours and rigorous sanitization practices during much of the quarter.
AutoZone also said it saw an uptick in sales during the final weeks of the quarter ending May 6 as many consumers began receiving federal stimulus checks.
The company withdrew its guidance, anticipating uncertainties around the pandemic to continue. “During the third quarter, we experienced the most extreme fluctuations in sales, both negative and positive, in the Company’s more than 40 year history. Because of this extreme volatility and uncertainty around the continued effects of the virus and government and consumer responses, it is difficult for us to forecast short-term results with any degree of confidence,” president and CEO Bill Rhodes said in the earnings release.
Has AutoZone found a way to prove itself essential in the age of Amazon or has the Death Star just not targeted it yet?
Though Jim Cramer noted that investors like AutoZone's earnings beat, the potential disruptive power of Amazon can't be denied. Check his full take in the video above.