AutoZone, Inc. stock research
FY2025 Q2
AutoZone (AZO) Gross Margin — Quarter Ended Feb 15, 2025
Revenue decreased compared with the previous quarter, while cost of revenue declined at a similar pace, resulting in a slightly improved gross margin. Gross profit and gross margin held relatively stable versus the same quarter one year earlier.
Gross margin takeaway
Quarter ended Feb 15, 2025 · FY2025 Q2
Revenue decreased compared with the previous quarter, while cost of revenue declined at a similar pace, resulting in a slightly improved gross margin. Gross profit and gross margin held relatively stable versus the same quarter one year earlier.
- The strongest observable margin driver is the relationship between cost of revenue and revenue; as revenue fell, cost of revenue fell proportionally, supporting margin stability.
- Compared with the immediately preceding quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved slightly. Compared with the same quarter one year earlier, revenue was higher, gross profit was essentially unchanged, cost of revenue was higher, and gross margin remained stable.
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
$4.0B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
-0.0 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 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% |
| Feb 15, 2025 | $4.0B | $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 23, 2024
+0.9 pts
Year-over-year change
Feb 10, 2024
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue; as revenue fell, cost of revenue fell proportionally, supporting margin stability.
Compared with the immediately preceding quarter, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin improved slightly. Compared with the same quarter one year earlier, revenue was higher, gross profit was essentially unchanged, cost of revenue was higher, and gross margin remained stable.
Monitor whether cost of revenue continues to move in line with revenue changes, as any divergence could affect gross margin.