AutoZone, Inc. stock research
FY2024 Q1
AutoZone (AZO) Gross Margin — Quarter Ended Nov 18, 2023
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Nov 18, 2023 · FY2024 Q1
Revenue and gross profit both increased, while cost of revenue also rose. Gross margin improved compared to both the prior quarter and the same quarter last year.
- Gross margin strengthened as gross profit grew faster than cost of revenue relative to revenue. The margin driver was the improved relationship between these components.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Versus the same quarter one year earlier, the same directional pattern held, with gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
52.8%
Gross profit
$2.2B
Revenue
$4.2B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+2.8 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% |
| May 6, 2023 | $4.1B | $2.1B | $1.9B | 52.5% |
| Nov 18, 2023 | $4.2B | $2.2B | $2.0B | 52.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 6, 2023
+0.4 pts
Year-over-year change
Nov 19, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened as gross profit grew faster than cost of revenue relative to revenue. The margin driver was the improved relationship between these components.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Versus the same quarter one year earlier, the same directional pattern held, with gross margin also higher.
Monitor whether the trend of revenue growth outpacing cost of revenue growth can be sustained.