AutoZone, Inc. stock research
FY2024 Q2
AutoZone (AZO) Gross Margin — Quarter Ended Feb 10, 2024
Revenue decreased from the prior quarter and increased from the same quarter last year, with gross profit and cost of revenue moving in parallel. The resulting gross margin was higher than both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Feb 10, 2024 · FY2024 Q2
Revenue decreased from the prior quarter and increased from the same quarter last year, with gross profit and cost of revenue moving in parallel. The resulting gross margin was higher than both the preceding quarter and the year-ago quarter.
- The gross margin improved on both sequential and year-over-year bases, reflecting a more favorable relationship between cost of revenue and revenue.
- Compared with the prior quarter, revenue and gross profit were lower while cost of revenue declined, leading to a higher gross margin. Compared with the same quarter a year ago, revenue and gross profit were higher while cost of revenue was unchanged, also resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.9%
Gross profit
$2.1B
Revenue
$3.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+1.6 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% |
| Feb 10, 2024 | $3.9B | $2.1B | $1.8B | 53.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 18, 2023
+1.1 pts
Year-over-year change
Feb 11, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved on both sequential and year-over-year bases, reflecting a more favorable relationship between cost of revenue and revenue.
Compared with the prior quarter, revenue and gross profit were lower while cost of revenue declined, leading to a higher gross margin. Compared with the same quarter a year ago, revenue and gross profit were higher while cost of revenue was unchanged, also resulting in a higher gross margin.
Customer demand trends, as noted in the filing's liquidity discussion, are a key item to monitor given their potential impact on operating cash flows.