AutoZone shares fell about 9% on Tuesday, marking their worst one-day drop in more than four years, even though the company beat Wall Street earnings and matched revenue expectations.
Investors reacted negatively to concerns raised on the earnings call, including slowing sales, weaker international growth, and margin pressure.
Executives attributed the slowdown partly to unseasonably cool weather reducing demand for heat-related products.
Analysts also questioned potential risks from inflation, energy costs, and possible supply constraints for motor oil tied to broader global disruptions, CNBC has reported.
Despite these concerns, AutoZone said it expects inflationary pressures to continue but remain relatively muted, and it does not foresee major supply issues.
