The company opened 79 net new stores during the twenty-four week period. The company is investing in new stores, new distribution centers, and hub and mega hub store expansion projects.

Domestic commercial sales increased $71.6 million to $1.1 billion, or 7.3% over the comparable prior year.

Operating, selling, general and administrative expenses increased to 36.0% of sales, up from 34.6% in the prior year. This increase was primarily driven by investments to support growth initiatives.

Management concluded that the company's disclosure controls and procedures were effective as of February 15, 2025.

There were no changes in the company's internal control over financial reporting that occurred during the quarter ended February 15, 2025, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting.

The company plans to continue leveraging inventory purchases, negotiating extended payment terms with suppliers, and maintaining a high accounts payable to inventory ratio to manage working capital effectively.

There have been no material changes in the company's risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended August 31, 2024.

The business is impacted by various factors within the economy that affect both consumers and the industry, including but not limited to inflation, interest rates, levels of consumer debt, fuel and energy costs, prevailing wage rates, foreign currency exchange rate fluctuations, supply chain disruptions, tariffs, trade policies and other geopolitical factors, hiring and other economic conditions.

Decreased demand or changes in buying patterns could also impact the ability to meet the debt covenants of our credit agreements and, therefore, negatively impact the funds available under our Revolving Credit Agreement.

During the second quarter of fiscal 2025, failure and maintenance related categories represented the largest portion of our sales mix at approximately 86% of total sales, which is consistent with the comparable prior year period.

The two statistics the company believes have the closest correlation to market growth over the long-term are miles driven and the number of seven year old or older vehicles on the road.

The second quarter was negatively impacted by unfavorable foreign currency exchange rates which had an overall impact to net sales of $91.1 million.

The current quarter gross margin comparison benefitted from higher merchandise margins, offset by a 36 basis point ($14.0 million) favorable non-cash LIFO adjustment in the comparable prior period.

Gross margin comparison partially offset by unfavorable supply chain costs driven by the opening of two new domestic distribution centers and a 27 basis point ($16.0 million) favorable non-cash LIFO adjustment in the comparable prior year period.

We had an accounts payable to inventory ratio of 118.2% at February 15, 2025, and 119.8% at February 10, 2024.

We also sell the ALLDATA brand automotive diagnostic, repair, collision and shop management software through www.alldata.com.

We also provide product information on our Duralast branded products through www.duralastparts.com.

Our commercial customers can make purchases through www.autozonepro.com.

From January 1, 1998, to February 15, 2025, the Company has repurchased a total of 155.4 million shares of its common stock at an aggregate cost of $37.8 billion, including 260.2 thousand shares of its common stock at an aggregate cost of $834.6 million during the twenty-four week period ended February 15, 2025.

On June 19, 2024, the Board voted to authorize the repurchase of an additional $1.5 billion of the Company's common stock in connection with its ongoing share repurchase program, which raised the total value of shares authorized to be repurchased to $39.2 billion.

Capital expenditures for the twenty-four weeks ended February 15, 2025, were $539.7 million compared to $490.8 million in the comparable prior year period. The increase in capital expenditures was primarily driven by our growth initiatives, including new stores and hub and mega hub store expansion projects.

The Company invests in certain tax credit funds that promote renewable energy and generate a return primarily through_the realization of federal tax credits.

The filing does not explicitly detail specific ESG initiatives or targets beyond the renewable energy tax credits. There is no discussion of environmental commitments, social responsibility initiatives, or governance practices.

The filing does not explicitly detail specific sustainability risks and opportunities.

The business is impacted by various factors within the economy that affect both consumers and the industry, including but not limited to inflation, interest rates, levels of consumer debt, fuel and energy costs, prevailing wage rates, foreign currency exchange rate fluctuations, supply chain disruptions, tariffs, trade policies and other geopolitical factors, hiring and other economic conditions.

The two statistics the company believes have the closest correlation to market growth over the long-term are miles driven and the number of seven year old or older vehicles on the road.

The Company has arrangements with third-party financial institutions to confirm invoice balances owed by the Company to certain suppliers and pay the financial institutions the confirmed amounts on the invoice due dates.