AutoZone, Inc. stock research
FY2023 Q2
AutoZone (AZO) Gross Margin — Quarter Ended Feb 11, 2023
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin improved sequentially but declined compared to the year-ago period.
Gross margin takeaway
Quarter ended Feb 11, 2023 · FY2023 Q2
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin improved sequentially but declined compared to the year-ago period.
- The sequential improvement in gross margin was supported by a larger reduction in cost of revenue relative to the decline in revenue. Compared to the prior year, however, the increase in cost of revenue outpaced the growth in revenue, leading to a weaker margin.
- Relative to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.3%
Gross profit
$1.9B
Revenue
$3.7B
Cost of revenue
$1.8B
Quarter-over-quarter change
n/a
Year-over-year change
-0.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 11, 2023 | $3.7B | $1.9B | $1.8B | 52.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Feb 12, 2022
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was supported by a larger reduction in cost of revenue relative to the decline in revenue. Compared to the prior year, however, the increase in cost of revenue outpaced the growth in revenue, leading to a weaker margin.
Relative to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was higher. Versus the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Monitor the merchandise inventory balance, which increased from the prior fiscal year-end, as it may influence future cost of revenue.