What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-10-28 compared with 2023-10-24 · 72 added, 102 removed, 238 unchanged (42% of the section changed)

3 unchanged sentences

Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.

At August 26, 2023, in 5,682 of our domestic stores as well as the vast majority of our stores in Mexico and Brazil, we had a commercial sales program that provided commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts.

At August 31, 2024, in 5,898 of our domestic stores as well as the vast majority of our stores in Mexico and Brazil, we had a commercial sales program that provides prompt delivery of parts and other products and commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts.

We also sell automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and our commercial customers can make purchases through www.autozonepro.com.

2 unchanged sentences

We do not derive revenue from automotive repair or installation services.

Our websites and the information contained therein or linked thereto are not intended to be incorporated into this report.

Human Capital Resources

3 unchanged sentences

We seek to be the employer of choice as we compete for talent in our retail stores, field supervision, distribution centers, and store support functions.

We focus heavily on retention by offering competitive compensation and benefits packages, extensive training and development opportunities and leveraging our business resource groups to support AutoZoners across the organization contribute their voices, time, and talent to helping other AutoZoners succeed in their careers.

We focus heavily on retention by offering competitive compensation and benefits packages, extensive training and development opportunities and by leveraging our business resource groups (“BRGs”) to support AutoZoners across the organization contribute their voices, time, and talent to helping other AutoZoners succeed in their careers.

As of August 31, 2024, we employed approximately 126,000 AutoZoners, approximately 60 percent of whom were employed full-time and the remaining 40 percent were employed part-time.

1 unchanged sentence

Included in the above numbers are approximately 17,500 AutoZoners employed in our international operations.

We have never experienced any material labor disruption, do not have any collective bargaining agreements and believe that relations with our AutoZoners are good.

We have never experienced any material labor disruption, do not have any collective bargaining agreements in the U.S.

and believe that relations with our AutoZoners are good.

Training & Development

2 unchanged sentences

Many members of our senior leadership team have held positions in multiple areas of the business.

We also invest in advanced leadership training in order to deepen our bench strength and support succession planning.

We also invest in advanced leadership training to deepen our bench strength and support succession planning.

For additional information, see “Store Operations—Store Personnel Training and Incentives” below.

1 unchanged sentence

The AutoZone Pledge and Values drive our success and foster a strong, unique culture of teamwork and customer service.

We encourage the recognition of AutoZoners for a variety of accomplishments, such as going above and

beyond to deliver Trustworthy Advice and WOW!

We encourage the recognition of AutoZoners for a variety of accomplishments, such as going above and beyond to deliver Trustworthy Advice and WOW!

Customer Service, taking initiative to prevent incidents and injuries, making contributions to help detect or report internal or external theft or providing significant service to help others.

2 unchanged sentences

Diversity, Equity and Inclusion (“DEI”)

“Embraces Diversity” is one of our Values, and we have made great strides in our DEI initiatives.

With the oversight and support of a cross-functional Diversity Council and DEI Steering Committee, our DEI efforts influence and inform many parts of our human capital management efforts including talent acquisition, retention, professional development and workforce management.

Our first business resource group (“BRG”) was established in 2014 (AutoZone Women’s Initiative).

“Embraces Diversity” is one of our Values, and we believe a diverse workforce has made meaningful contributions to our success.

Our DEI efforts influence and inform many parts of our human capital management efforts including talent acquisition, retention, professional development and workforce management.

Our first BRG was established in 2014 (AutoZone Women’s Initiative).

Since then, five other BRGs now exist to help AutoZoners across the organization grow and succeed in their careers.

The BRGs are open to all AutoZoners.

Health and Safety

13 unchanged sentences

Store Formats

Substantially all stores are based on standard store formats, resulting in generally consistent appearance, merchandising and product mix.

Approximately 90% to 99% of each store’s square footage is selling space.

In our satellite stores, approximately 40% to 50% of our space is dedicated to hard parts inventory, while our hub and mega hub stores have 70% to 85% of their space utilized for hard parts.

Substantially all stores are based on standard store formats, resulting in generally consistent appearance, merchandising and product mix with approximately 90% to 99% of each store’s square footage used as selling space.

Most of our stores carry approximately 20,000 to 25,000 unique SKUs with 40% to 50% of the space dedicated to hard parts inventory.

Hub stores carry approximately 40,000 to 50,000 unique SKUs and mega hub stores carry approximately 80,000 to 110,000 unique SKUs with 70% to 85% of their space utilized for hard parts.

The hard parts inventory area is generally fronted by counters or pods that run the depth or length of the store, dividing the hard parts area from the remainder of the store.

The remaining selling space contains displays of maintenance, accessories and non-automotive items.

Stores are replenished primarily by the nearest distribution center but also typically have same-day access to one of our 327 domestic and 46 international hub stores’ expanded inventory assortment.

As a subset of our domestic hub stores, we ended fiscal 2024 with 109 mega hub stores, an increase of 11 since the end of fiscal 2023.

Additionally, we have three mega hub stores in Mexico.

Hub and mega hub stores work in concert with other stores to drive customer satisfaction through improved local parts availability and expanded product assortments.

Store Personnel Training and Incentives

9 unchanged sentences

Monterrey, Mexico;

Chihuahua, Mexico and Sao Paulo, Brazil.

Chihuahua, Mexico;

Sao Paulo, Brazil;

and Gurugram, India.

We believe that this centralization enhances consistent execution of our merchandising and marketing strategies at the store level, while reducing expenses and cost of sales.

In addition, we have offices in Shanghai, China and Haryana, India that provide sourcing, technology or other support functions.

In addition, we have offices in Shanghai, China and Istanbul, Turkey that provide sourcing or other support functions.

Store Automation

6 unchanged sentences

Our commercial sales program operates in a highly fragmented market, and we are a leading distributor of automotive parts and other products to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts in the Americas.

As part of our program, we offer credit and delivery to our customers, as well as online ordering through www.autozonepro.com or through the AutoZone Pro smartphone application.

Through our hub and mega hub stores, we offer a greater range than our satellite stores of parts and products desired by professional technicians.

As part of our program, we offer credit and delivery to our customers, as well as online ordering through www.autozonepro.com or through the AutoZone Pro mobile application.

Through our hub and mega hub stores, we offer a greater range than our satellite stores of parts and products desired by

professional technicians.

We have dedicated sales teams focused on independent repair shops as well as national, regional and fleet commercial accounts.

11 unchanged sentences

Marketing and Merchandising Strategy

We are dedicated to providing customers with superior service and trustworthy advice as well as quality automotive parts and products at a great value in conveniently located, well-designed stores.

We are dedicated to providing customers with superior service and trustworthy advice as well as quality automotive parts and products at a great value in our conveniently located, well-designed stores and through our online platforms.

Key elements of this strategy are:

3 unchanged sentences

Our electronic parts catalog assists in the selection of parts as well as identifying any associated warranties offered by us or our vendors.

In addition to our in-store offerings, we sell automotive hard parts, maintenance items, accessories and non-automotive parts through www.autozone.com, for pick-up in store or to be shipped directly to a customer’s home or business, with next day or same day delivery programs in most of our U.S.

Additionally, we offer a smartphone application that provides customers with store locations, driving directions, operating hours, product availability, the ability to purchase products and other information.

We also provide specialty tools through our suite of free services.

Through our Loan-A-Tool program customers can borrow a specialty tool, such as a steering wheel puller, for which a do-it-yourself (“DIY”) customer or a repair shop would have little or no use other than for a single job.

In addition to our in-store offerings, we sell our full suite of automotive hard parts, maintenance items, accessories and non-automotive parts through www.autozone.com, for pick-up in store or to be shipped directly to a customer’s home or business, with next day or same day delivery programs in most of our U.S.

Additionally, we offer a mobile application that provides customers with store locations, driving directions, operating hours, product availability, the ability to purchase products and other information.

We also provide access to specialty tools as one of our free services.

AutoZoners also provide free diagnostic and related services, including check engine and anti-lock braking system light readings through our AutoZone Fix Finder service, testing of starters, alternators and batteries, battery charging and the collection of used oil for recycling.

29 unchanged sentences

We believe customer satisfaction is often impacted by our ability to promptly provide specific automotive products as requested.

Each store carries the same basic products, but we tailor our hard parts inventory to the makes and models of the vehicles in each store’s trade area, and our sales floor products are tailored to the local store’s demographics.

Our hub stores (including mega hubs, which carry an even broader assortment) carry a larger assortment of products that are delivered to local satellite stores.

Each store carries the same basic products, but we tailor our hard parts inventory to the makes and models of the vehicles in each store’s trade area and tailor the remaining store’s assortment to the local demographics.

Our hub stores (including mega hub stores, which carry an even broader assortment) carry a larger assortment of products that are available to customers of the surrounding local stores.

We are continuously updating the products we offer to ensure our inventory matches the products our customers need or desire.

1 unchanged sentence

For many of our products, we offer multiple value choices in a good/better/best assortment, with appropriate price and quality differences from the “good” products to the “better” and “best” products.

A key differentiating component versus our competitors is our exclusive line of in-house brands, which includes Duralast and the family of Duralast brands, ProElite, ShopPro, SureBilt, TotalPro, TruGrade and Valucraft.

A key differentiating component versus our competitors is our exclusive line of in-house brands, which includes Duralast and the family of Duralast brands, Econocraft, ProElite, ShopPro, SureBilt, TotalPro, TruGrade and Valucraft.

We believe that our overall value compares favorably to that of our competitors.

13 unchanged sentences

Merchandise is selected and purchased for all stores through our store support centers located in Memphis, Tennessee;

Monterrey, Mexico and Sao Paulo, Brazil.

Additionally, we have offices in Shanghai, China, Haryana, India and Istanbul, Turkey to support our global sourcing efforts.

In fiscal 2023, one class of similar products accounted for approximately 14 percent of our total revenues.

No other class of similar products accounted for 10 percent or more of our total revenues, and no individual vendor provided more than 10 percent of our total purchases.

Monterrey, Mexico;

Sao Paulo, Brazil and Gurugram, India.

Additionally, we have offices in Shanghai, China and Istanbul, Turkey to support our global sourcing efforts.

In fiscal 2024, one class of similar products accounted for approximately 15 percent of our total revenues and one individual vendor provided 12 percent of our total purchases.

No other class of similar products accounted for 10 percent or more of our total revenues, and no other individual vendor provided more than 10 percent of our total purchases.

We believe alternative sources of supply exist, at similar costs, for most types of product sold.

1 unchanged sentence

The distribution centers replenish our stores up to multiple times per week depending on store sales volumes.

We ended fiscal 2023 with 308 domestic and 39 international hub stores, which have a larger assortment of products as well as regular replenishment items that can be delivered to a store in its network within 24 hours.

Hub stores are generally replenished from distribution centers multiple times per week.

Hub stores have increased our ability to distribute products on a timely basis to many of our stores and to expand our product assortment.

As a subset of our domestic hub stores, we ended fiscal 2023 with 98 mega hubs, an increase of 20 since the end of fiscal 2022.

Additionally, we have two mega hubs in Mexico.

Mega hubs work in concert with other hubs to drive customer satisfaction through improved local parts availability and expanded product assortments.

A mega hub carries inventory of 80,000 to 110,000 unique SKUs, approximately twice what a hub store carries.

Mega hubs provide coverage to both surrounding stores and other hub stores multiple times a day or on an overnight basis.

Currently, we have over 6,000 domestic stores with access to mega hub inventory.

A majority of these stores currently receive mega hub service same day.

The sale of automotive parts, accessories and maintenance items is highly competitive due to numerous factors, including name recognition, product availability, customer service, store location and price.

AutoZone competes in the aftermarket auto parts industry, which includes both the retail DIY and commercial do-it-for-me (“DIFM”) auto parts and products markets.

Our competitors include national, regional and local auto parts chains, independently owned parts stores, online automotive parts stores or marketplaces, wholesale distributors, jobbers, repair shops, car washes and auto dealers, in addition to discount and mass merchandise stores, hardware stores, supermarkets, drugstores, convenience stores, home stores and other retailers that sell aftermarket vehicle parts and supplies, chemicals, accessories and tools.

The sale of automotive parts, accessories and maintenance items is highly competitive.

AutoZone competes on the basis of customer service, including the knowledge and expertise of our AutoZoners and our ability to provide prompt delivery to commercial customers;

3 unchanged sentences

and the strength of our AutoZone brand name, trademarks and service marks.

Government Relations

29 unchanged sentences

Our primary website is www.autozone.com.

We make available, free of charge, at www.autozone.com, by clicking “Investor Relations” located at the bottom of the page, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, registration statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended, as soon as reasonably feasible after we electronically file such material with, or furnish it to, the SEC.

We make available on the Investor Relations section of our website, free of charge, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, proxy statements, registration statements and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934, as amended, as soon as reasonably feasible after filing or furnishing such documents with the SEC.

Our websites and the information contained therein or linked thereto are not intended to be incorporated into this Annual Report on Form 10-K.

Information about our Executive Officers

The following list describes our executive officers, which are elected by and serve at the discretion of the Board of Directors.

The following list describes our executive officers, who are elected by and serve at the discretion of the Board of Directors.

The title of each executive officer includes the words “Customer Satisfaction” which reflects our commitment to customer service.

Rhodes, III, 58—Chairman, President and Chief Executive Officer, Customer Satisfaction

Rhodes, III has served as AutoZone’s President and Chief Executive Officer, and a director since 2005 and was named Chairman in 2007.

Rhodes, III, 59—Executive Chairman, Customer Satisfaction

Rhodes, III was appointed Executive Chairman by the Board of Directors in January 2024 and has been Chairman since 2007.

Prior to that, Mr.

Rhodes served as AutoZone’s President and Chief Executive Officer, and a director since 2005.

Prior to his appointment as President and Chief Executive Officer, Mr.

2 unchanged sentences

Rhodes was a manager with Ernst & Young LLP.

As previously announced, Mr.

Rhodes has notified the Board of his intention to relinquish his roles as President and Chief Executive Officer, effective January 2024, and the Board intends to appoint Mr.

Rhodes to the role of Executive Chairman at such time.

Daniele III, 54—CEO-Elect, Customer Satisfaction

Daniele III was named CEO-Elect in June 2023.

Previously Mr.

Daniele had served as Executive Vice President – Merchandising, Marketing and Supply Chain from June 2021 to September 2023.

The Board of Directors intends to appoint Mr.

Daniele to the role of Chief Executive Officer and also appoint him to serve on the

Board in January 2024.

Previously, Mr.

Daniele served as Senior Vice President – Commercial from 2015 to 2021, Vice President – Commercial Support from 2013 to 2015 and Vice President – Merchandising from 2008 to 2013.

Daniele III, 55—President and Chief Executive Officer, Customer Satisfaction

Daniele III was appointed President and Chief Executive Officer and was also appointed to serve on the Board in January 2024.

Prior to his appointment as President and Chief Executive Officer, Mr.

Daniele was named CEO-Elect in June 2023.

Prior to that, Mr.

Daniele served as Executive Vice President – Merchandising, Marketing and Supply Chain from June 2021 to September 2023, Senior Vice President – Commercial from 2015 to 2021, Vice President – Commercial Support from 2013 to 2015 and Vice President – Merchandising from 2008 to 2013.

Daniele was also a Divisional Vice President – Store Operations from 2005 to 2008.

2 unchanged sentences

Jamere Jackson, 55—Chief Financial Officer, Customer Satisfaction

Jamere Jackson was named Chief Financial Officer in January 2021 and, in that capacity, leads the Finance and Store Development teams.

Jackson also held the title of Executive Vice President from January 2021 until his promotion in September 2023.

Jamere Jackson was named Chief Financial Officer in September 2020 and, in that capacity, leads the Finance and Store Development teams .

Prior to joining AutoZone, Mr.

12 unchanged sentences

From 2007 to 2015, Mr.

Newbern served as Senior Vice President overseeing Store Operations and Commercial.

Newbern served as

Senior Vice President – Store Operations, with additional oversight of Loss Prevention and Store Development.

From 1998 to 2007, Mr.

3 unchanged sentences

Hackney was named Executive Vice President – Merchandising, Marketing and Supply Chain in September 2023.

Previously, Mr.

Prior to that, Mr.

Hackney served as Senior Vice President – Merchandising, since rejoining the Company in October 2022 after a brief retirement.

7 unchanged sentences

Michelle Borninkhof was named Senior Vice President and Chief Information Officer in April 2021.

Prior to that, Ms.

Prior to joining AutoZone, Ms.

Borninkhof was Chief Information Officer and Vice President for U.S.

4 unchanged sentences

Borninkhof held various roles in store retail, distribution center operations and process improvement.

Frazer, 47—Senior Vice President – Finance, Store Development and Strategy, Customer Satisfaction

Frazer was named Senior Vice President Finance, Store Development and Strategy in March 2023.

From 2021 to 2023 Mr.

Frazer served as Executive Vice President – Store Operations, Commercial and Loss Prevention.

From 2019 to 2021 Mr.

Frazer served as Senior Vice President – Store Operations.

Prior to that, Mr.

Frazer was Vice President – Store Operations Support.

Frazer began his career with AutoZone in 2006 in Finance and has held several key functional roles.

Prior to joining AutoZone, Mr.

Frazer was a senior manager with the accounting firm of KPMG, LLP.

Gould, 55—Senior Vice President – Supply Chain, Customer Satisfaction

3 unchanged sentences

Prior to that, Mr.

Gould held several key management

positions with the Company, including Vice President of Commercial, Commercial Support and Merchandising Pricing & Analysis.

Gould held several key management positions with the Company, including Vice President – Commercial, Commercial Support and Merchandising Pricing & Analysis.

Hurtado, 63—Senior Vice President – International, Customer Satisfaction

5 unchanged sentences

Hurtado held different positions with RadioShack including Director General in Mexico and General Manager in Venezuela.

Jaycox, 56 — Senior Vice President – Commercial, Customer Satisfaction

Jaycox was named Senior Vice President – Commercial in July 2024.

From 2020 to 2024, Mr.

Jaycox served as Senior Vice President and Chief Commercial Officer for United States Steel Corporation where he was responsible for their commercial functions, customer value creation, pricing and revenue growth.

Prior to that, Mr.

Jaycox served as Vice President of Transformation at Sysco Corporation, where he led numerous sales, digital transformation and supply chain initiatives.

Lehman, 46 — Senior Vice President – Marketing, Customer Satisfaction

Lindsay Lehman was named Senior Vice President – Marketing in November 2023, where she leads the Marketing and E-commerce teams.

Prior to that, Ms.

Lehman held the role of Vice President – Marketing for AutoZone.

Prior to joining AutoZone in 2020, Ms.

Lehman served as Senior Vice President, Marketing at Norwegian Cruise Line Holdings, where she was responsible for global marketing, digital and analytics functions.

Lehman previously held roles of increasing responsibility at Kraft Foods, Hearst Corporation and Goldman Sachs.

LeRiche, 56—Senior Vice President – Store Operations, Customer Satisfaction

4 unchanged sentences

LeRiche held several other key management positions with the Company.

McGee, 61—Senior Vice President – Commercial, Customer Satisfaction

McGee was named Senior Vice President – Commercial in June 2021 and has notified the Company of his intent to retire, effective around the end of the 2023 calendar year.

From 2007 to 2021, Mr.

McGee was a Divisional Vice President – Store Operations.

From 2004 to 2007, Mr.

McGee was Vice President – Commercial.

Prior to 2004, Mr.

McGee held several other key positions with the Company.

Charlie Pleas, III, 58— Senior Vice President – Accounting and Finance, Customer Satisfaction

Charlie Pleas, III, became Senior Vice President, Finance and Accounting in December 2021 and has notified the Company of his intent to retire, effective around the end of the 2023 calendar year.

Pleas was named Senior Vice President and Controller during 2007.

Prior to that, Mr.

Pleas held several key management positions within the Company’s accounting department.

Prior to joining AutoZone, Mr.

Pleas was a Division Controller with Fleming Companies, Inc.

where he served in various capacities during his tenure from 1988 to 1996.

Prior to 1988, Mr.

Pleas worked with Ernst & Young.

Pleas is a member of the Board of Directors for Kirkland’s Inc.

Albert Saltiel, 59—Senior Vice President – Marketing and E-Commerce, Customer Satisfaction

Albert Saltiel was named Senior Vice President – Marketing and E-Commerce during October 2014 and has notified the Company of his intent to retire, effective around the end of the 2023 calendar year.

Previously, Mr.

Saltiel was Senior Vice President – Marketing since 2013.

Prior to that, Mr.

Saltiel was Chief Marketing Officer and a key member of the leadership team at Navistar International Corporation.

Saltiel has also been with Sony Electronics as General Manager, Marketing, and Ford Motor Company where he held multiple marketing roles.

Smith, 60—Senior Vice President – Human Resources, Customer Satisfaction

1 unchanged sentence

Smith has been an AutoZoner since 1985, previously holding the position of Divisional Vice President – Store Operations since 1997.

Prior thereto, Mr.

Prior to that, Mr.

Smith served in various key positions within the Company.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business