AutoZone posts 9% increase in 3rd-Q profit as tough economy sends parts sales higher

Automotive-parts retailer AutoZone said fiscal 3rd-Q profit rose 9%, helped by an increase in replacement-part sales as consumers held on their cars longer. The Memphis company earned $173.7M, or $3.13 a share, for the 12 weeks ended May 9. It earned $158.6M, or $2.49 a share, in that quarter last year. Sales rose 9% to $1.66B. Analysts Thomson Reuters surveyed expected a $2.89 a share profit on $1.61B sales. AutoZone's benefited from the slowdown in the economy as strapped consumers hold back on buying new cars, opting instead to keep & repair their existing vehicles. New-vehicle sales are down 37% for the 1st 4 months of the year, according to Autodata. "While the current economic environment, combined with the reduction in fuel prices compared to last year, has clearly been beneficial to our industry's performance, we are very pleased with our organization's ability to capitalize on these favorable trends," CEO Bill Rhodes said. Inventory rose 6% compared to the year-ago quarter. It said it opened 32 new stores in the U.S. & 10 in Mexico during the quarter. Shares of AutoZone fell $2.84 to $160 in premarket e-trade. The stock gained 17% since the start of the year & traded between $84.66 & $169.99 in the past 52 weeks.