How Does AutoZone Make its Money?
AutoZone is the largest retailer and distributor of automotive replacement parts and accessories in the United States, operating approximately 7,200 stores in the US, Mexico, and Brazil. The company serves both do-it-yourself (DIY) customers who fix their own vehicles and do-it-for-me (DIFM) commercial customers — professional repair shops and mechanics. AutoZone’s competitive advantages include its massive distribution network, knowledgeable sales staff (AutoZoners), proprietary brands (Duralast), and one of the most aggressive share repurchase programs in corporate America — the company has reduced its share count by over 85% since 1998. The aging US vehicle fleet (average age 12.6 years) is a powerful secular tailwind.
AutoZone (AZO) Business Model
AutoZone operates in the retail sector. Below is a summary of AutoZone’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from AutoZone’s 2024 fiscal year filings with the SEC.
AutoZone Competitors
AutoZone’s key competitors and comparable public companies in the retail sector include How O, Costco, Dollar General, and Home Depot. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how AutoZone stacks up by comparing their revenue breakdown, margins, and growth metrics.
AutoZone Competitors
AutoZone’s key competitors and comparable public companies in the retail sector include How O, Costco, Dollar General, and Home Depot. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how AutoZone stacks up by comparing their revenue breakdown, margins, and growth metrics.
AutoZone Competitors
AutoZone’s key competitors and comparable public companies in the retail sector include How O, Costco, Dollar General, and Home Depot. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how AutoZone stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| DIY (Do-It-Yourself Retail) | $11,200 | $10,800 | +3.7% |
| DIFM (Commercial/Professional) | $5,500 | $5,000 | +10.0% |
| Other (Mexico, Brazil, Online) | $1,300 | $1,200 | +8.3% |
| Total Revenue | $18,200 | $17,500 | +4.0% |
DIY (Do-It-Yourself Retail) — 62% of Revenue
DIFM (Commercial/Professional) — 30% of Revenue
Other (Mexico, Brazil, Online) — 7% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $18,200 | $17,500 |
| Cost of Revenue | $8,400 | $8,100 |
| Gross Profit | $9,800 | $9,400 |
| Operating Expenses | $5,300 | $5,100 |
| Operating Income | $4,500 | $4,300 |
| Net Income | $3,000 | $2,900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 53.8%
- Operating Margin: 24.7%
- Revenue Growth: 4.0%
Is AutoZone Profitable?
Yes, AutoZone is profitable. The company reported net income of $3,000 on total revenue of $18,200. With an operating margin of 24.7%, AutoZone demonstrates solid profitability for the retail sector. The gross margin of 53.8% reflects AutoZone’s pricing power and cost structure.
What to Watch
- Commercial (DIFM) growth rate as mega hub and hub store strategy expands parts availability
- Same-store sales growth amid normalizing miles driven patterns
- International expansion pace in Mexico and Brazil
- Impact of EV adoption on long-term auto parts demand (EVs need fewer parts)
AutoZone (AZO) Financial Summary
AutoZone (AZO) is a retail company that generated $18,200 in total revenue in fiscal year 2024. Revenue grew 4.0% year-over-year. The company earned $3,000 in net income, making it profitable. For a deeper look at AutoZone’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.