AutoZone closed its 2025 fiscal year with record expansion, adding a net 304 stores worldwide, a pace more than 43 percent higher than the year before. The surge in growth underscores the company’s confidence in its operating model, which has been supported by steady sales gains across its existing store base.
Not all of the metrics moved in the same direction. For the 52 weeks ending August 30, 2025, net sales rose 2.4 percent compared with the prior year, but margins narrowed. Gross margins declined by 47 basis points, operating expense ratios rose by 96 basis points and operating margins fell by 143 basis points. Still, same-store sales offered signs of resilience, climbing 3.9 percent overall. International growth was especially strong, with same-store sales up 9.3 percent in constant currency. Domestic stores posted a 3.2 percent increase.
The company has been leaning heavily on its multi-tiered store strategy. In addition to traditional retail outlets, AutoZone has been building out hub and mega-hub formats. These stores, which combine retail and distribution functions, span 30,000 to 50,000 square feet and stock about 100,000 items. Beyond serving walk-in customers, they supply nearby stores with harder-to-find products.
CEO Philip Daniele said during the company’s September 23 earnings call that these larger formats are outperforming the chain’s traditional stores and will be a priority in future expansion.
“Hub and Mega-Hub comps results continue to grow faster than the balance of the chain, and we're going to continue to aggressively deploy these assets for FY '26,” he said. The company ended fiscal 2025 with 133 mega-hub stores and expects to add another 25 to 30 in the coming year, with a long-term goal of nearly 300.
Commercial sales have also been a bright spot. Average weekly sales in that segment grew nine percent during the fourth quarter, with mega-hubs driving particularly strong results, according to Chief Financial Officer Jamere Jackson. That performance, executives noted, not only strengthens the company’s business but also helps stabilize the real estate footprint that supports its operations.
Growth was broad-based across all U.S. regions, with the strongest gains in the Northeast and Rust Belt. Daniele also downplayed concerns about the impact of tariffs pushing prices higher, pointing out that car repairs are not discretionary and that the industry has historically been able to pass added costs along to customers.
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