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These Factors Affected AutoZone’s Fiscal 3Q17 Revenues

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AutoZone’s business

AutoZone (AZO), a Tennessee-based auto parts company, generates revenue by selling auto parts and accessories primarily in the US, Puerto Rico, Mexico, and Brazil. In 2015 and 2016, US automakers (FXD) such as General Motors (GM) and Ford Motor (F) benefited from higher US demand for trucks and utility vehicles.

This positive trend also boosted the growth potential for US auto parts sellers like AutoZone, O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP).

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AutoZone’s 3Q17 revenues

In fiscal 3Q17, AutoZone reported revenues of $2.6 billion—about 1% higher than in fiscal 3Q16. According to the company, its domestic same-store sales fell 0.8%, however, YoY (year-over-year) during the quarter.

AutoZone’s management continued to highlight its focus on improving closure rates, which should lead to higher sales for the company in the future.

Data collection and customer experience

Recently, AutoZone also began collecting data to recognize the shopping patterns of its customers. This step could help AutoZone customers to get a better-customised shopping experience going forward.

During the fiscal 3Q17 earnings conference call, AutoZone President and CEO (chief executive officer) Bill Rhodes noted: “We continue to see our Northeastern, Midwestern, and Mid-Atlantic markets underperform the balance of the chain as two consecutive mild kinds of weather negatively impacted these regions.”

Continue to the next part for a look at how AutoZone’s key business segments performed in fiscal 3Q17.

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