This is a preview of our full fiscal 4Q22 report on Autozone’s performance. Download for free here.
As noted in our recent Advance Auto Parts earnings report, Autozone (AZO) is both leading and slightly growing its market share compared to Advance Auto Parts (AAP) and O’Reilly Auto Parts (ORLY). In August 2022, AZO represented 44.7% of DIY spend across the three companies, up from the prior year, and 130bps higher from its share in August 2020. Management confirmed on their recent 4Q22 earnings call that they “continue to retain the vast majority of the enormous share gains in dollars and more importantly, in units that [they] built during the initial stages of the pandemic.”
Management mentioned that “recent performance gives [them] continued conviction about the sustainability into FY ’23.” But questions abound on both short and long term health of the DIY auto parts industry. Decades-long downward pressure on units due to automotive technology improvements and weakening demand from low-income shoppers could both bite. Download the full report here.