Here are 1-3 brief analogies to describe AutoZone (AZO):

• The Home Depot for car parts.
• Amazon for auto parts, but with physical stores.

• Automotive Parts: Sells new and remanufactured automotive parts for various vehicle systems, including brakes, engines, electrical, and heating/cooling.
• Automotive Accessories: Offers a wide range of accessories for vehicle customization, comfort, and interior/exterior care.
• Automotive Chemicals & Fluids: Provides motor oils, antifreeze, brake fluid, transmission fluid, and various other vehicle maintenance chemicals.
• Automotive Tools & Equipment: Sells hand tools, power tools, diagnostic equipment, and specialized tools for vehicle repair and maintenance.
• Commercial Program (Service): Provides professional automotive repair shops with parts delivery, volume pricing, and specialized customer service.
• DIY Services (Service): Offers free in-store services such as battery testing, battery charging, and a loan-a-tool program to assist do-it-yourself customers.

AutoZone (AZO) serves two primary categories of customers:

• Do-It-Yourself (DIY) Customers: These are individual vehicle owners who purchase parts, accessories, and tools for the maintenance and repair of their own vehicles. They typically visit AutoZone's retail stores or make purchases through its e-commerce platforms.
• Commercial (Do-It-For-Me - DIFM) Customers: This category includes professional automotive repair shops, independent garages, service stations, and new car dealerships. These businesses purchase parts and supplies from AutoZone to service their clients' vehicles. AutoZone operates a dedicated commercial program, often providing direct delivery services, to serve these professional installers.

Philip B. Daniele III President and Chief Executive Officer

Philip B. Daniele III was appointed President and Chief Executive Officer of AutoZone in January 2024. He joined AutoZone in 1993 and has spent his entire career with the company. Prior to his current role, he served as Executive Vice President of Merchandising, Marketing, and Supply Chain from 2021 to 2023 and Senior Vice President of Commercial from 2015 to 2021. He has held numerous other key management positions within AutoZone, including Vice President of Commercial Support, Vice President of Merchandising, and Divisional Vice President of Store Operations.

Jamere Jackson Chief Financial Officer

Jamere Jackson has served as Chief Financial Officer of AutoZone since September 2020, becoming the first African-American CFO in the company's history. Before joining AutoZone, Mr. Jackson was the Executive Vice President and Chief Financial Officer of Hertz Global Holdings, Inc. From 2014 to 2018, he was the Chief Financial Officer of Nielsen Holdings plc, where he was also the first African-American CFO. He spent nearly a decade at General Electric Company in various financial leadership roles, including Vice President and Chief Financial Officer of a division of General Electric Oil and Gas. Earlier in his career, he held finance, mergers and acquisitions, and strategic planning roles at Procter & Gamble, Yum Brands (Pizza Hut), First Data Corporation, and Total System Services. Mr. Jackson is also a member of the Board of Directors for Eli Lilly & Co.

William C. Rhodes III Executive Chairman

William C. Rhodes III assumed the role of Executive Chairman of AutoZone in January 2024. He previously served as AutoZone's President, Chief Executive Officer, and a director from 2005 to January 2024, and was elected Chairman in June 2007. Mr. Rhodes joined AutoZone in 1994, after beginning his career as a manager at Ernst & Young LLP. Under his leadership as CEO, AutoZone approximately doubled its store count, increased its workforce to about 115,000 employees, and grew revenues by more than three times. He is a former board member of Dollar General and currently serves as Chairman of the Retail Industry Leaders Association.

Michelle D. Borninkhof Senior Vice President and Chief Information Officer

Michelle D. Borninkhof was appointed Senior Vice President and Chief Information Officer of AutoZone in May 2021. Before joining AutoZone, Ms. Borninkhof served as Chief Information Officer and Vice President for U.S. Technology at McDonald's Corporation. Prior to McDonald's, she spent 11 years with Walmart Stores, holding various leadership roles including Vice President, International Technology Delivery. Her professional experience also includes diverse roles in store retail, distribution center operations, and process improvement.

Thomas B. Newbern Chief Operating Officer

Thomas B. Newbern serves as the Chief Operating Officer of AutoZone. He has also held roles as Executive Vice President of International, Information Technology & ALLDATA and Executive Vice President of Store Operations, Commercial, Loss.

The key risks to AutoZone's business are primarily driven by the evolving automotive industry, macroeconomic factors, and competitive pressures.

1. Transition to Electric Vehicles (EVs): The shift towards electric vehicles presents a substantial long-term risk for AutoZone. EVs generally have fewer moving parts, require less frequent maintenance, and may diminish the demand for many traditional automotive replacement parts and accessories that constitute a significant portion of AutoZone's sales. While EVs currently represent a small percentage of the total vehicle fleet, their market share is steadily growing, indicating a potential future decline in the core market for internal combustion engine (ICE) vehicle parts.
2. Economic Uncertainty and Consumer Spending: AutoZone's performance is sensitive to broader economic conditions and consumer spending habits. Factors such as inflation, high interest rates, elevated energy prices, and overall economic uncertainty can lead consumers to defer vehicle maintenance and repairs or reduce discretionary purchases of automotive accessories. This cautious consumer behavior directly impacts AutoZone's sales trends and profitability.
3. Supply Chain Challenges and Intense Competition: AutoZone faces ongoing risks related to its supply chain and the highly competitive automotive aftermarket. Supply chain disruptions, including those caused by global economic and geopolitical conditions or tariffs, can impact the availability and cost of merchandise. Additionally, the company operates in an intensely competitive environment with both traditional brick-and-mortar rivals and a growing number of online retailers, which can exert pressure on pricing and market share.

The clear emerging threat to AutoZone is the accelerating transition of the automotive industry towards Electric Vehicles (EVs).

EVs have significantly fewer moving parts compared to Internal Combustion Engine (ICE) vehicles, resulting in reduced maintenance requirements for parts such as oil filters, spark plugs, engine belts, exhaust systems, and many traditional fluids. Regenerative braking in EVs also extends the life of brake components. As the global vehicle fleet gradually electrifies, demand for a substantial portion of AutoZone's current product offerings, which cater heavily to ICE vehicle maintenance and repair, will decline over time.

Evidence for this threat includes the aggressive EV production targets set by major automakers, government regulations promoting EV adoption, increasing consumer interest and sales of EVs, and the substantial investments being made across the automotive supply chain to support this transition.

AutoZone's main products and services are centered on the sale of automotive aftermarket parts and accessories. The addressable markets for these products and services include:

• U.S. Automotive Aftermarket: The entire U.S. automotive aftermarket, encompassing light, medium, and heavy-duty vehicles, is projected to be nearly $535 billion in 2024. More specifically, the U.S. light-duty aftermarket parts market is projected to be over $400 billion in 2024. Another estimate places the U.S. automotive aftermarket size at USD 228.19 billion in 2024, with a projection to surpass approximately USD 350.64 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.39% from 2025 to 2034.
• Global Automotive Aftermarket: The global automotive aftermarket industry was valued at approximately USD 463.21 billion in 2024. This market is expected to experience significant growth, with projections indicating an increase to USD 804.82 billion in 2029, and potentially reaching around USD 1,419.23 billion by 2034, with a CAGR of 5.62% from 2025 to 2034.

AutoZone (AZO) is expected to drive future revenue growth over the next 2-3 years through several key strategic initiatives:

1. Expansion of Mega Hub and Hub Store Network: AutoZone is focused on expanding its domestic "Mega Hub" and hub store network, with a long-term goal of reaching 300 Mega Hub locations. These larger format stores serve as mini-distribution centers, carrying a significantly broader inventory (over 100,000 SKUs) and improving parts availability and delivery speed to both its own satellite stores and commercial clients. This expansion is a critical component of its business strategy to enhance service levels and capture a larger share of the professional repair market.
2. Accelerated Growth in Domestic Commercial (DIFM) Business: The domestic Do-It-For-Me (DIFM) commercial business is a primary driver of growth for AutoZone. The company has been consistently accelerating its domestic commercial sales, with initiatives such as improved execution, enhanced customer service, and optimized supply chain operations contributing to increased market share. Commercial programs are now deployed in over 90% of domestic stores, and the productivity per program is increasing, leading to sustained double-digit revenue growth expectations for this segment.
3. International Market Expansion: AutoZone is actively pursuing an aggressive international expansion strategy, particularly in Mexico and Brazil. The company plans to accelerate new store openings, targeting around 100 new international stores in fiscal year 2025 and an accelerated pace of store growth in the Americas (325-350 locations) for fiscal year 2026. This expansion into new geographies is designed to tap into new revenue streams and diversify its global presence.
4. Strategic Investments in Supply Chain and Technology: AutoZone is making significant investments in its supply chain, IT systems, and technology to boost operational efficiency and customer satisfaction. This includes leveraging AI-driven forecasting for inventory management to minimize stockouts and optimize stock levels, enhancing digital platforms for both DIY and commercial customers, and improving overall supply chain operations to ensure product availability and faster delivery times. These strategic investments are expected to underpin future growth.

Share Repurchases

• AutoZone's Board authorized an additional $1.5 billion for share repurchases in October 2025, increasing the total authorization since the program's inception in 1998 to $40.7 billion.
• The company repurchased $1.5 billion of its common stock during fiscal 2025.
• In fiscal 2024, AutoZone repurchased $3.2 billion worth of its shares.

Share Issuance

• No significant share issuances for capital raising purposes were identified within the last 3-5 years; the company has primarily focused on reducing outstanding shares through its repurchase programs.

Inbound Investments

• No information is available regarding large investments made in AutoZone by third-parties, such as strategic partners or private equity firms, over the last 3-5 years.

Outbound Investments

• AutoZone invested $227.5 million in tax credit equity investments in fiscal 2024.

Capital Expenditures

• Capital expenditures increased to $1.3 billion in fiscal 2025.
• The company invested $1.1 billion in capital assets in fiscal 2024.
• Primary focus areas for capital expenditures include opening new stores (including hub and mega hub formats), accelerating international expansion in Mexico and Brazil, enhancing distribution capabilities, and investing in IT systems to improve customer service and inventory management.