Good morning joining us for and conference quarter second today call. AutoZone’s XXXX thank for you
Officer; Treasurer, and today are Executive Bill President President, and Financial With Vice Brian and Relations Chief me Investor Vice Tax. Campbell, Giles,
opportunity an Relations comments Calls www.autozone.com, to our Conference on available is If learn press on today the with to results. second about read website, quarter’s along I the had our the Earnings Please complementing see quarter, release the release you’ve under slides our press Quarterly Investor click Regarding hope and not, link. them.
for quarter. want to of environment I a dedication work entire the organization hard delivering all in morning, past to their Starting AutoZoners this challenging great light service customer and this sales across thank
reported, season, quarter. in confident heading And last winter the a performance. cautious was second remained X.X% weather than fall Coming our to off strong second in quarter last been our weather, mentioned in during impact year. into widely selling I having year, our each quarter our but on were and conference execute, can significantly milder call, second can much has same-store our volatile ability of we delivered as QX, As be it sales our
both, While level plan was were net and we income deliver our our certainly and were, EPS sales expectations at the to commendable. meaningfully below
an simple business, it amazingly continues executed in differentiate our day work. us. than be geographies more level very to every high is a have culture to X,XXX make We yet and everything guide to has This locations countries and multiple across where order at in
of least our store inventory presentation with performance to can in and happy how we behind also megahub quarter delivering incremental POS updated This system. rollouts, feel full our certainty, replacements, on ongoing customers, I for digitally past initiatives, materially focus and not our this continued the we sales interact both, But, put quarter, are of many to which space. of focus our rollout customer we and you none service is better our to second remainder retail us We on the commercial to year. the the enhancements tell included with
quarter’s morning, more about I’ll cadence, regional commercial, monthly retail performance categories this merchandise a by providing color talk impacted In little the results. lastly, sales the versus differences, sales and
for quarter. to cadence regard the In
our As but below positive the plan certainly sales two-thirds we first our completed and expectations. of same-store our quarter, were
As prior weeks winter also quarter, the arrived. our you polar will mild was in two until the of year, the vortex the weather recall, when last
our another positive it than was were but softer our we two-year the was first mild same-store against considerably with winter our one, sales growth in comparing quarter. were As
poor winter last last end this performance we against to last our severe sales weather the compared quarter, very the down year, was weeks. X% of for At combined same-store as year the with compared two
were performance, focus two-thirds sales weeks good year our the have stated first as over Unfortunately, timing much we both of time, weather the this the quarter quarter. basis, of and end, volatile impacts And the bad. performance. have quite on many, the our in result timing In worse. can the However, and is many been long-term couldn’t times, normalized of our substantially second on a two-year the quarter four comp-store than stronger last
remaining XXX in our these and lower Our over where sales than soft northern performance was the ended in the than points an last even markets markets and basis points in remaining weeks markets quarter. two of the Midwestern particularly same-store our basis X,XXX lower Northeastern larger markets
Our With we these for for business from certainly but sales of business the other make in pronounced this markets. Northeastern timeframe not over sales trajectory businesses. Midwestern from our markets, both off was XX% of saw the our from DIY fall during sales sales and we than more could for areas up slow our commercial, shortfall our coming
quarter. merchandise during Regarding mix the
combined commercial and Our they cold for businesses our and down the were categories These businesses, seasonal retail particularly antifreeze in two on were X% the batteries, basis of same-store the of and winter, quarter. categories, were down both significant the performing last materially quarter, across were weather than across more north total the XX% fluids, and weeks combined. are worst and down think in a for us, country
during certain EBIT our resilient The performance quarter. our model clearly very is With team for X.X% and This team per expectations changes during in share grew our our didn’t is how challenged nonetheless. a growth but was periods. aspirations, impressive environment, X% earnings in the sales testament to delivered or meet
flow climates. diligent I’m our all us allows Our financial very grow is business model cash proud organization in how and steadily. of EPS to
through us, the was positive our to on During quarter, January. data share, market end available of the slightly based the
market expectations, our haven’t we QX or changes plan performance beyond comfortably the weather. drivers seen for While in any industry sales was our and material below
we federal quarter our our is enter enter earnest which as reach right to excited selling third starting customers. are to refunds begin season, We where to began in robust now tax our
We year, both we believe different. retail This mild results. the and but each past, improve had expect this normalized winters in you’re is initially cycle have commercial We refund now will seeing from season. businesses a tax -- quarter’s our
over doing also benefit great some feel will We’re that we things sales time.
that continued have to technology. these We along allow this locations. now investment to opened and our in further investments with competitors rollout from in to industry. key competitive believe differentiate accelerate areas two close further may more exist, or store us megahub XX our of allowing megahubs quarter We our offerings us gaps Our
parts. deep, business our important commercial year, do to it AutoZoners. more and our receive for deep, easier both have but with, provide And market to for our simultaneously of megahubs sectors business. particularly our making commercial us while Our is efficient to coverage continue will critical local making enhancements to our for very customers and hard-to-find systems This store this
are As our enter we an excellent We the look AutoZoners remainder focusing great doing sales job believe on all-important customer service. our of year. and season, ready our stores for the are we
to quarter, provide grew specifics last quarter X.X% quarter. To total X.X%. compares This at growing the on this our sales
the Our DIY calendar in by basis-point X.X% total. headwind DIFM versus shift, comps affected quarter. of were sales last sales while numbers the XX were for year, negatively Both up these a were causing down
quarter second We Regarding up double-digit could our we commercial quarter, reach a last last and comparison we business. growth the to harder were but growth. XX.X% year against expected in positive domestic
While for marketers, team we quarter, our have sales into merchants, differentiated, really our our we operators, to experience team, across technologists, did a to bought our customers. for providing not the and organization compelling, the ALLDATA, team comprehensive from and credit on, goal double-digit achieve on targeted feel our
our approach, we with with rewarded incremental business So, the marketplace in that continue customers. by will to be
of and inventory peers This smaller in store the expansions, of strong many from our brand more combination very the than efforts of across that to been customer of been increased remain very reputation growth effectively and many teams our hub megahub has industry come have tremendous volume, the growth Duralast convey part engagement absolute base, growing our ever-strengthening for sales has we improvements, our operating growth robust, enhancements, years, technology rate. in assortment organization rate than of value professional the on proposition. sales significantly including entire our store development While a our initiatives
at store versus grew our sales also last commercial quarter. We rate second per mid-single-digit year’s
our commercial annual are have continued programs the opened approximately averaging in fewer this program per have X% of past produce year. last XX% up us. program averaged $X,XXX a to sales we we We already stores quarter, as over weekly openings program, Although for
grown offerings, overall have been improved ability programs and shopping to previous with years and recognized customers and mature have rate and experience are last improved products, customer coverage, our substantially customers. years, sales the two versus We by service the our at our customers’ enhance growth mature rewarded indicating
across different otherwise shops, faster grew making business, are than and Finally, independent geographies types. and business, are the repair we broad-based as improvements overall our street the indicating customer that our known down commercial up
for confidence enhanced this the impact as regarding Our considerable and growth business. opportunities offerings. continues there appreciating to very new a our our business believe will remains the commercial We AutoZoners’ are have and continue increase, to in positive customers us on commercial
Regarding Northeast quite better at the last DIY business. domestic our versus and we with Midwest poorly performing year. West Regionally, did
normalize effects As we positively sales from weather our and perspective, most volatile as the second But performance. our always reminded folks is does both quarter call, sales on last over negatively. quarter quarter’s a time,
In of for there regard year. within upcoming are the enough from we business feel the we for are tailwinds the the sales remainder planning to for quarters, here modeling that growth
roll We that across also chain as DIFM, DIY initiatives to expect add and out performance. for improved sales our will they the both
regard technologies capital leverages with and stores. we make This new new developed touch legacy more quicker we Recently, some to operating both DIY by have we deal much workflow in internally out our sales and screen us that businesses. will transactions and succinct as very old capabilities benefit expedite new In future investments, POS system logical DIFM invested making changes system retail replace codes. architecture allowing and to our our the to a great technology our and expense rolled to
We’ve updating system. some our new agility that also store implementing scenes work done the increase a system important by human management and operating our help should capital behind
for systems. confident We us remain commercial new great continue commercial help our in at investing as customers are these of technologies, that And a continue future. to easier accelerated business also pace an with test means grow we to allowing we doing our will deal the
highlighted cost we result in expected seeing tariffs. -- that we noted to amount we’re inflation cost that what have call, were to our tariffs, see SKU-by-SKU was tariffs, had began in We the than at it quarter’s basis the of a but In to have a as years, rise. we last due to higher of level, we of On common on for goods past. with deflation cost a us we past
As began we pass the costs prices. onto were customers through retail to those tariffs higher introduced, our
certain costs share in successful with from also to were tariffs. vendors We the negotiating
However, we increases. price some did to have incur
as average in considerable weighted intentionally passed costs along we are product tariffs cost method. we higher certain lines, costs through in As accounting tranches those in those particular absorbed retails our
through get At this their tariffs cost we And reduced applying further are have point, To-date, the to in planning manageable. imported customs any relief been we and on goods retails tariffs for by not U.S. from for in trying on tariffs are fact, impact our office. China.
As year, cost on commensurate we’ve implemented the same-store retail to about been and we we sales. lap increases have asked this tariff begin will the impact last
do over next the do the believe we inflation we in year, XX While headwind the a same not will a were incur the tariffs expect net SKU months. benefit past like-for-like we as last the there to think material for nor be year, don’t significant
At we may talk any coronavirus about disruption be this from point, I’d to ongoing like the seeing epidemic.
we While disruption thus are incurred being and have we must far, not diligent.
a plan have category We sourced created merchandise contingency each from for China.
this to a impact situation done At as New an the But to report. and begun reopen of scenarios. we both teams holiday. Year our this more retail industry. wonderful Chinese Lunar factories job overall just will is ourselves, lasts, It have after Our fluid and it very extended potential have nothing many the for planning have a longer the point, substantial currently outbreak the
back Some others line haven’t next weeks back line on slowly will critical. and of are quite coming while yet. few quickly, them come be on certain The
our Turning efforts. omnichannel to
We customers to meeting they where by in when, how customer shop. our shopping strategy to invest continue enhance experience to the want and
parts our initiatives improve mobile AutoZonePro systems in Duralast websites, autozone.com, have to in-store ALLDATA. and place app, We and
online small We ship-to-home, in website below business, see percentage a omnichannel growth next growth sales. and very of and traffic pick-up day continue substantially buy delivery, to rapid in-store X%. still But, in our represents
over omnichannel and business higher to see sales our at last online omnichannel of continue mix and as its We XX% year. total pick-up than buy in-stores largest with
continues deliver customers BOPIS than AutoZoners model importance highlighting of where faster our grow value business, high-touch to high the Our model ship-to-home on the to a operating advice our place them. our trustworthy
for theme operating service. annual XX customer years our of Regarding XXXX, wow
flawless deliveries; products; on We matters fast and continue trustworthy across to quality service; parts to a and the our relentless push customers: execution enterprise. for Exceptional what focus high advice;
or continue we We store for balance continue our for AutoZoners. remove and will tasks, removing to year. This to activities our a for redundant improve customer of can By we focus us levels the know all be of identify or service major non-customer-facing these the streamlining service.
availability provide provide substantial this strong assortment, exceptional ensure to with and improving for customers, to we to we for with Along parts place work local work AutoZoners continue opportunities with organization service provide our a returns manage our advancement to and great our for shareholders.
We not were performance DIY increasing both, year. our We relatively largely and line we we operating in pleased of prospects with favor. our fiscal for the growing committed while encouraged with In were top gas summary, and and our industry factors share macro our remainder such pleased DIY to prices commercial. with low in remain remain in our market driven remain our as performance, strength and both believe and the DIFM, miles
during Now, more provide accomplished let me what on detail we the quarter.
domestic XX% program. the For United commercial stores a of new quarter, stores in the Currently, new net our commercial programs. program and international our XX opened vast have States of XX have opened stores commercial majority business our the we and a
we international the expand new Brazil. footprint, During quarter, our Mexico to two opening and in one stores continued in
performance highlight should were as in able our at quarter invested to second we again We once finish another return strong XX.X%. on capital
We retailing. one continue of in metric all this the to is be it hardlines pleased of with best as
dollar an stewardship we diligence our in incremental capital. continues we to maintain However, the every acceptable always capital. of invest and reinforce business, we ensure cost we that excess investors’ important to our of that focus It’s primary regarding been as deploy be has in will capital capital our this provides well our is that capital of return
financial customers great discussion for XXXX. to like thank solid fiscal results, again pass the I’d second I for results to talk efforts our the their Bill to of Giles about AutoZoners deliver to service our over our to Before financial quarter and
Now, Giles. Bill I’ll it turn Bill? to over
