AutoZone, Inc. stock research
FY2025 Q1
AutoZone (AZO) Gross Margin — Quarter Ended Nov 23, 2024
Revenue rose compared to both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher than a year ago, leading to a gross margin that weakened sequentially yet improved year-over-year.
Gross margin takeaway
Quarter ended Nov 23, 2024 · FY2025 Q1
Revenue rose compared to both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher than a year ago, leading to a gross margin that weakened sequentially yet improved year-over-year.
- The primary driver of margin changes was the relative movement of revenue and gross profit. Revenue growth outpaced gross profit growth in the sequential comparison, while gross profit grew faster than revenue on a year-over-year basis.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.0%
Gross profit
$2.3B
Revenue
$4.3B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Nov 18, 2023 | $4.2B | $2.2B | $2.0B | 52.8% |
| Feb 10, 2024 | $3.9B | $2.1B | $1.8B | 53.9% |
| May 4, 2024 | $4.2B | $2.3B | $2.0B | 53.5% |
| Nov 23, 2024 | $4.3B | $2.3B | $2.0B | 53.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
-0.5 pts
Year-over-year change
Nov 18, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of margin changes was the relative movement of revenue and gross profit. Revenue growth outpaced gross profit growth in the sequential comparison, while gross profit grew faster than revenue on a year-over-year basis.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was higher.
Monitor demand trends and customer buying patterns, as the filing notes they could affect cash flows from operations.