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AutoZone: Can 300 New Stores A Year & Mega-Hubs Drive A Powerful Market Share Surge?

AutoZone, Inc. reported an 8.1% increase in total sales for the second quarter of fiscal 2026, supported by domestic same-store sales growth of 3.4% and a 2.5% increase on a constant currency basis internationally. The company opened 64 stores globally during the quarter, accelerating store openings compared to the prior year, with plans to open around 350 to 360 stores for the full fiscal year. Sales growth was driven by a 9.8% increase in domestic commercial sales, which form a significant portion of the business, and a 1.5% increase in domestic do-it-yourself (DIY) sales, despite challenges from unseasonably severe winter weather impacting commercial customer activity during the final weeks of the quarter. Earnings per share (EPS) declined by 2.3% to $27.63, primarily due to a noncash $59 million LIFO inventory charge that negatively affected gross margin by approximately 137 basis points and operating profit by 1.2%.