(Reuters) – AutoZone on Tuesday missed Wall Street estimates for second-quarter revenue, as the automotive parts retailer navigated headwinds due to consumers holding back and currency rate fluctuations.
Shares of the company fell about 2.2% in premarket trading following the results.
The retailer had previously warned that inflationary headwinds were weighing on its wallet-cautious buyers, which impacted its DIY segment.
U.S. President Donald Trump’s move to levy tariffs on imports from Mexico and Canada as well as double the duties on Chinese goods to 20% is also expected to affect the auto industry as it attempts to cut costs.
Bernstein analyst Daniel Roeska said he anticipates the tariffs will cause «severe disruptions» in North American supply chains and automotive profit margins.
AutoZone’s quarterly net sales fell 2% to about $3.95 billion, missing estimates of about $3.98 billion, according to data compiled by LSEG.
Its domestic same-store sales in the quarter ended February 15 rose 1.9%, compared with an increase of 0.3% a year ago.
The company’s net income was $515 million, or $28.29 per share, in the fourth quarter, compared with $487.9 million, or $28.89 per share, a year ago.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas)
