AutoZone (AZO) official guidance

Similar to DIY, we saw ticket average growth of around 5%. We would expect this trend to continue into Q1.

For the first quarter of FY 2027, we expect same-store sales to be relatively flat with average ticket to remain around +5% that we saw in Q4.

We expect our domestic same-store sales to be flat to up low single digits, driven by an expectation of approximately 4% ticket growth.

As with retail, we expect ticket average to grow in the roughly 4% range, and we expect to continue to grow market share fueled by our growth initiatives.

While we plan to again invest around $1.65 billion in CapEx in FY 2027, we are committed to managing our investment to achieve strong results in invested capital over time.

For Q1, we suggest investors model us at approximately 22.7% all in.

We expect to continue being an incredibly strong cash flow generator in fiscal 2027 and are planning higher free cash flow that will fund growth and robust returns to the shareholder in the form of share buybacks.

Given the lumpiness of gross margins this year, excluding LIFO, you should expect gross margins to be flat to up 25 basis points on a GAAP basis in FY 2027.

We are planning interest of $114 million for the first quarter of FY 2027 versus $106 million in Q1 last year.

In total, we are modeling $85 million to $90 million in LIFO charges for FY 2027.

With respect to LIFO assumptions for Q1, we are anticipating a $40 million charge and expect approximately $15 million in charges for quarters two, three, and four.

With respect to LIFO assumptions for Q1, we are anticipating a $40 million charge and expect approximately $15 million in charges for quarters two, three, and four.

With respect to LIFO assumptions for Q1, we are anticipating a $40 million charge and expect approximately $15 million in charges for quarters two, three, and four.

With respect to LIFO assumptions for Q1, we are anticipating a $40 million charge and expect approximately $15 million in charges for quarters two, three, and four.

As a reminder, in Q1, we expect LIFO to reduce EBIT by approximately $40 million, impact our gross margin rate negatively by approximately 80 basis points, and our EPS by approximately $1.85 a share.

As a reminder, in Q1, we expect LIFO to reduce EBIT by approximately $40 million, impact our gross margin rate negatively by approximately 80 basis points, and our EPS by approximately $1.85 a share.

As a reminder, in Q1, we expect LIFO to reduce EBIT by approximately $40 million, impact our gross margin rate negatively by approximately 80 basis points, and our EPS by approximately $1.85 a share.

Our operating cash flow was over $3.3 billion for the year, second only to FY 2027 at the height of the pandemic, and should increase again in FY 2027.

Similarly, we expect SG&A per store to grow roughly 3% for FY 2027 or approximately 8% on a total growth basis.

We expect SG&A per store and total growth to be in a similar range in the first quarter of FY 2027, which is up roughly 4% on a per store basis or 8.5%-9% on a total growth basis.