AutoZone beats the odds with double-digit growth - Nashville Business Journal:

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“You have to have a lot of parte to be able tosay I’ve got it,’ on the front end,” Lawrence The company’s competitors, including , , and , are all performinf better in the current economy as “There is obviously a tailwine with the economic situation of new car sales down and peoplee having to spend more,” Lawrence says. Advances Auto Parts reported total salesof $1.6 billion for the first quarter, a 16-weeok period ended April 25. This was a 10.3 increase compared to total salesdof $1.53 billion in first quarter 2008.
Shelly spokesman for Advance, attributes sales to recent economic “People are keeping their cars longer, with the averags age of a car increasing,” she “As people are keeping those cars they need to do more work on those While the company is seeingmore do-it-yourselferws concerned about increasing fuel economy and general maintenance, Advance focusesz more on the commercial side of automotivre parts retailing. “We’re seeing a lot of peoplew who used to goto dealers; they’re going to that corner garage to save some Whitaker says. Advance opened 114 stores last year and plans to open anothet 100this year.
AutoZone’sw stock has been another strong poing forthe company, hitting $159.36 in mid-dag on June 3. Its 52-week high is $169.99, the stock’as all-time high. That’s a far cry from the mid-$20 rangs the company’s stock was tradingb for a decade ago. “We’ve been saying for the better part of a decadee that with any weakness inthe shares, we would buy them, hold them and it’s been a greayt investment,” Lawrence says.
“When you have 18% you’re moving into the fourthg quarter, which is your biggest period ofthe year, and they have executer as they have in the past six we think they’re being a little conservative with the numbers.” The company’w stock repurchase plan is humming alonvg as well, with AutoZone buying 450,0000 shares in the first quarterr for $65 million, or an average pricee of $145 per share. Fiscal year-to-date, it has purchaser $713 million of stock at an averageof $130 a share and it has $396 millioj remaining in its current share repurchasse program.
The company has used its cash flow to make investmentes in itsstore base, including larger storex with additional space for supplying other stores and garages, Lawrence says. AutoZone is also spending more moneyu on training and retaining while making sure it attractw the best new talent with a focus on improvinemployee benefits, according to Campbell. AutoZone employs 1,3009 people locally. “We’re continuing to grow, opening stores and addinyg personnel,” he says. “To us, this is an opportunith of continued growth.
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