AutoZone reported Q1 FY2026 (QQ1 2026) total sales of $4.63 billion, up 8.2% year over year, with domestic same-store sales (+4.8%) and international constant-currency growth (+3.7%). The quarterly performance was materially influenced by a noncash LIFO charge of $98 million which reduced EBIT by about 212 basis points and lowered EPS by roughly $4.39 per share. Excluding the LIFO charge, EBIT would have been up 4.9% and EPS up 8.9% versus the prior year. Management emphasized ongoing investment in growth initiatives, including accelerated store openings and Mega Hub deployments, to support longer-term margin expansion and market share gains. In tandem, foreign exchange fluctuations provided a tailwind, notably a peso strength in Mexico, adding roughly $37 million to revenue, $11 million to EBIT, and about $0.44 of EPS versus the prior year. Net income was $531 million and diluted EPS $31.04 for the quarter.
Strategically, AutoZone continued to execute on its North American DIY and domestic commercial growth while advancing international expansion. Management guided toward an accelerated global store-opening cadence (350–360 net new stores in FY26, with 65–70 stores planned in Q2) and approximately $1.6 billion in capital expenditures for FY26 to fund new stores, two new international distribution centers (Mexico and Brazil), and Mega Hub assets (targeting ~300 Mega Hub locations). The company expects merchandise margin improvements to offset the mix shift toward a higher-growth, higher-margin commercial business, while LIFO-related costs are anticipated to persist in the near term. Overall, AutoZone remains confident in its ability to grow market share, deliver durable cash flow, and return capital to shareholders, albeit with a higher near-term SG&A footprint tied to rapid expansion.