AutoZone Beats...

If you can't buy them you got to fix them

Auto parts retailer AutoZone (NYSE:AZO), nearly 50% owned by Sears Holdings (NASDAQ:SHLD) Chairman Eddie Lampert (he also has nearly 50% of auto retailer AutoNation (NYSE:AN)reported for the 12 weeks ended November 22nd, sales of $1.478 billion, an increase of 1.6% from last year's first quarter. Same-store sales or sales for stores open more than one year were down 1.5% for the quarter.

This marks the sixth consecutive quarter of positive sales growth. In the first quarter, gross profit as a percentage of sales was up 23 basis points versus last year's quarter, while operating expenses as a percentage of sales increased by 40 basis points. This resulted in an operating margin of 16.1%, down 17 basis points from last year's quarter. Operating profit increased 0.5% versus the prior year.

Net income for the quarter was $131 million, a decrease of 0.9%. And diluted earnings per share increased 10.1% to $2.23 from $2.02 in the year ago quarter. Return on invested capital for the trailing four quarters of 23.9%

With credit tight and sales as Ford (NYSE:F), GM (NYSE:GM), Toyota (NYSE:TM) and Honda (NYSE:HMC) plummeting, older cars will need to be fixed. This trend will bode well for Autozone for at least the next year.