AutoZone's stock sinks toward 7-month low after rival Advance Auto Parts' disappointing results, dividend cut

Shares of AutoZone Inc. (AZO) sank 6.4% toward a 7-month low in premarket trading Wednesday, in the wake of a disappointing earnings report from rival auto parts seller Advance Auto Parts Inc. (AAP), which included cuts to its full-year guidance and its dividend amid a competitive pricing environment. AutoZone had reported last week a quarterly profit beat but sales that missed, citing weaker-than-expected March sales. At that time, AutoZone Chief Executive Officer William Rhodes had said he'd seen a competitor move their pricing, but saw no indications that competitor's pricing was lower than AutoZone's. Meanwhile, shares of other auto parts sellers also fell, with O'Reilly Automotive Inc.'s stock (ORLY) down 5.5% toward a 7-week low and Genuine Parts Co.'s stock (GPC) down 5.0% toward an 8-month low.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-31-23 0848ET

Copyright (c) 2023 Dow Jones & Company, Inc.