...March 25, 2024 AutoZone's supply chain investments and renewed focus on its store operations will likely support improving commercial sales growth. The company increased the sales in its commercial or do-it-for-me (DIFM) segment by 2.7% in the second quarter of fiscal year 2024, which continued a trend of low- to mid-single-digit percent increases over the past year. The pace of the improvement in AutoZone's DIFM sales has been slower than we forecast, which we believe is attributable to uneven economic conditions, execution challenges, and the effects of adverse weather on its product sales. Management has responded by implementing organizational changes aimed at sharpening its execution. In addition, we believe AutoZone's expansion of its distribution network, including by adding two new distribution centers and more hub and mega hub stores, will support market share gains by improving its inventory selection and availability. Overall, we forecast the company will increase its revenue...
