AutoZone recently announced net sales of $4 billion for the second quarter ending February 15, 2025, marking a 2% increase from the prior year's comparable period. Despite this growth, both net income and earnings per share saw a year-over-year decline, indicating challenges in profitability management. Over the last quarter, AutoZone's share price rose by 9%, a significant move against the backdrop of a broader market downturn where indices faced steep declines due to concerns over new tariffs and economic uncertainty. The company's continued share buyback program might have supported this positive price movement, partly offsetting the impact of weaker earnings. The market's focus on U.S. trade policies and their potential impact on global business operations likely amplified investor attention on firms showing resilience, which may have benefited AutoZone’s stock performance amid widespread market challenges.

Take a closer look at AutoZone's potential here.

Over the last five years, AutoZone's total shareholder returns have seen an impressive growth of 212.27%. This robust performance is highlighted by the strategic share repurchase programs, which have continuously supported the share price. The company's authorization to increase its buyback plan by US$1.5 billion in 2024 underscores this commitment to returning value to shareholders.

Moreover, despite the earnings growth recently slowing to 1.9%, AutoZone's consistent annual profit growth of 10.3% over the past five years has bolstered long-term shareholder value. Leadership transitions, such as Phil Daniele adopting the CEO role in January 2024, may have further bolstered investor confidence. Additionally, AutoZone’s shares outperformed the specialty retail sector, which observed an 8.9% return over the last year, providing a competitive edge relative to industry peers.

• Unlock the insights behind AutoZone's valuation and discover its true investment potential
• Uncover the uncertainties that could impact AutoZone's future growth—read our risk evaluation here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:AZO.

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