©Reuters. File Photo: Photo of AutoZone store entrance, December 10, 2013, Temple City, California.Reuters/Mario Anzuoni/File photo
(Reuters) – Auto parts retailer AutoZone (NYSE:) on Tuesday reported better-than-expected quarterly profits, helped by a do-it-yourself (DIY) trend among customers who want to keep their old cars.
Demand for auto parts remained strong throughout the quarter as rising prices for new and used cars deterred some buyers from buying new cars.
The Memphis, Tenn.-based company is also benefiting from the fact that some drivers are shunning the latest high-tech cars in favor of older models.
AutoZone CEO Phil Danielle said, “While the difficult comparability of both the Christmas and New Year's holidays negatively impacted quarterly sales performance, we continue to be encouraged by sales activity. We believe that we are well positioned for future growth.”
Overall sales for the second quarter rose 4.6% to $3.86 billion, compared to analysts' average estimate of $3.84 billion, according to LSEG data.
Excluding items, AutoZone's earnings per share were $28.89 (compared to $24.64 in the prior year period), which also beat LSEG's estimates of $26.28 per share.
Two weeks ago, rival parts supplier O'Reilly (NASDAQ:) Automotive also reported quarterly profits that beat street expectations.