MEMPHIS, Tenn. -AutoZone's third-quarter profit rose 9.3 percent, as better sales and efficiency improvements boosted margins.
The auto parts retailer earned $248.6 million, or $6.28 per share, up from $227.4 million, or $5.29 per share, in the same quarter last year.
Sales rose 6.7 percent to $2.11 billion, from $1.98 billion.
AutoZone beat Wall Street earnings estimates by 3 cents, but just missed revenue projections, according to a poll byFactSet , and shares slipped more than 2 percent in premarket trading.
Revenue at domestic stores open at least a year increased 3.9 percent. That is key gauge of a retailer's health, because it excludes the volatility associated with stores that opened or closed during the quarter.
Better sales allowed the company to leverage its distribution costs, which helped boost margins. Meanwhile, diminished incentive compensation cut operating expenses, AutoZone said.
The company opened 33 new domestic stores during the quarter, bringing its domestic total to 4,613. It also opened 10 stores in Mexico, bringing its total in that country to 297.
Shares of AutoZone Inc., based in Memphis, Tenn., fell $8.55, or 2.6 percent, to $360 in electronic trading before the bell.
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