Finances

AutoZone, Inc. (AZO) released its fourth quarter and full-year earnings report on Tuesday, September 23. While the auto parts company reported increased quarterly sales, its shares dipped by about 2% following the release of the report.

The company reported net sales of $6.24 billion during the quarter, slightly below analysts’ expectations of $6.25 billion. This was up 0.6% from $6.21 billion in sales during the same quarter last year. For the full year, the company’s net sales were up 2.4% to $18.94 billion.

“I would like to thank our entire organization for delivering another strong quarter of sales growth,” said AutoZone CEO, Phil Daniele. “We continue to be pleased with the results of our strategies to grow both our domestic and international DIY and Commercial sales. We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time.”

AutoZone reported net income of $836.95 million for the quarter or $48.71 per adjusted share. This was down from $902.21 million or $51.58 per adjusted share in the same quarter last year. For the full year, AutoZone reported net income of $2.50 billion. 

The Tennessee-based company experienced a 4.8% increase in their domestic same-store sales and a 2.1% increase in international same-store sales for the quarter. The company reported a decrease of 98 basis points to 51.5% in gross profits as a percentage of sales for the quarter. The company’s inventory increased 14.1% over the same period last year, driven primarily by growth initiatives. During the quarter, AutoZone opened 91 stores in the U.S., 45 in Mexico and six in Brazil. At the end of the quarter, the company had a combined total of 7,657 stores globally.

AutoZone, Inc. (AZO) shares ended the week at $4,198.03, up 1% for the week.

Cintas Posts Earnings

Cintas Corporation (CTAS), a uniform rental and cleaning supply company, released its first quarter earnings on Wednesday, September 24. Despite the company reporting increased revenue, its stock fell by 4% following the report.

Revenue for the first quarter reached $2.72 billion, up 8.7% from revenue of $2.50 billion reported during the same quarter last year. This was above analysts’ expectations of $2.69 billion.

“In the first quarter, we achieved strong revenue growth, along with healthy margin expansion, reflecting our disciplined execution, ongoing investment in technology and talent, and the unwavering commitment of our employee-partners,” said Cintas’ CEO, Todd Schneider. “Our results reflect the strength of our value proposition and demonstrate the value we deliver to customers across all segments. By staying focused on operational excellence and investing in our people and platforms, we continue to position Cintas for sustainable growth and long-term value creation.”  

Cintas reported quarterly net income of $491.14 million or $1.20 per diluted share. This was up from $452.03 million or $1.10 per diluted share during the same quarter last year.

The company’s uniform rental and facility services segment grew 8.1% year-over-year, reaching $2.09 billion. The first aid and safety services segment reported $334.66 million in revenue. Operating income came in at $617.86 million, an increase of 10.1% compared to last year’s first quarter. Throughout the quarter, Cintas paid dividends totaling $182.3 million to shareholders, an increase of 15.4% compared to last year. The company raised its full fiscal year guidance and expects annual revenue to be between $11.06 to $11.18 billion.

Cintas Corporation (CTAS) shares closed at $204.24, up 2% for the week.

Stitch Fix Reports Results

Stitch Fix, Inc. (SFIX) released its fourth quarter and full-year earnings report on Wednesday, September 24. The clothing company’s shares rose by more than 12% following the release of the report.

Net revenue for the quarter came in at $311.23 million, down 2.6% from $319.55 million in net revenue at this time last year. This beat analysts’ expectations of $304 million in net revenue. Full-year revenue returned at $1.27 billion, a 5.3% decrease from $1.34 billion in fiscal 2024.

“Fiscal 2025 was a milestone year for Stitch Fix,” said Stitch Fix CEO, Matt Baer. “We finished the year with our second consecutive quarter of year-over-year revenue growth on an adjusted basis, and once again gained share in the US apparel market. Looking ahead, we will continue to fuel growth by harnessing the power of AI, our assortment of leading brands, and the human connection of our Stylists, to deliver the most client-centric and personalized shopping experience.”

The company posted a net loss of $8.58 million for the quarter or $0.07 per share. This compares to a net loss of $36.50 million or $0.29 per share during the same quarter last year. For the full year, the company reported a net loss of $28.74 million or $0.22 per diluted share. This was an improvement from a net loss of $128.84 million or $0.99 per diluted share in fiscal 2024.

In comparison to the previous year, Stitch Fix reported a decrease of 7.9% in active clients to 2,309,000. Net revenue per active client increased 3.0% year-over-year to $549 per client. The company generated free cash flow of $2.8 million and ended the fourth quarter with $242.7 million in cash, investments and no debt. Stitch Fix expects net revenue between $333 and $338 million for the first quarter of fiscal 2026 and between $1.28 and $1.33 billion for the full-year fiscal 2026.

Stitch Fix, Inc. (SFIX) shares ended the week at $4.69, down 21% for the week.

The Dow started the week of 9/22 at 46,207 and closed at 46,247 on 9/26. The S&P 500 started the week at 6,654 and ended at 6,644. The NASDAQ started the week at 22,607 and finished at 22,484.

U.S. Treasury yields rose mid-week as markets digested the latest economic data on new home sales. Yields held steady later in the week after a decline in jobless claims helped ease concerns about a weakening labor market.

On Wednesday, the Commerce Department’s Census Bureau released their monthly report on sales of new single-family homes. The report revealed a 20.5% increase in the sales of new homes, reaching a seasonally adjusted annualized 800,000 homes in August. This marked the highest level since January 2022 and surpassed analysts’ expectations of 650,000 units. On a year-over-year basis, new home sales increased 15.4%.

“We were expecting a gain but not that large,” said chief economist at the National Association of Home Builders, Robert Dietz. “Always important to remember the margin of error for new home sales is large. We’ll need to wait for revisions next month and the September data point to see if this is smoothed out.”

The benchmark 10-year Treasury note yield opened the week of September 22 at 4.13% and traded as high as 4.20% on Thursday. The 30-year Treasury bond opened the week at 4.75% and traded as high as 4.79% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 14,000 to 218,000 for the week ended September 20, below analysts’ expectations of 235,000. Continuing unemployment claims totaled 1.93 million, a decrease of 2,000 claims from the prior week.

"Today’s report refutes any theories that layoffs have suddenly taken off,” said chief economist at High Frequency Economics, Carl Weinberg. “It also undermines calls for more and bigger rate cuts, both at the Fed and in the market.”

The 10-year Treasury note yield finished the week of 9/22 at 4.18%, while the 30-year Treasury note yield finished the week at 4.76%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, September 25. The survey showed an uptick in mortgage rates after recent downward trends.

This week, the 30-year fixed rate mortgage averaged 6.30%, up from last week’s average of 6.26%. Last year at this time, the 30-year fixed rate mortgage averaged 6.08%.

The 15-year fixed rate mortgage averaged 5.49% this week, up from last week’s 5.41%. During the same week last year, the 15-year fixed rate mortgage averaged 5.16%.

“Following several weeks of decline, mortgage rates inched up this week,” said Freddie Mac’s Chief Economist, Sam Khater. “Housing market activity continues to hold up with purchase and refinance applications increasing by 18% and 42%, respectively, compared to the same time last year.”

Based on published national averages, the savings rate was 0.40% as of 9/15. The one-year CD averaged 1.70%.

Editor’s Note: The publicly available financial information is offered as a helpful and informative service to our friends. This article is not an endorsement of any company, product or service.