How do AZO's Q4 expenses compare year-over-year?

AutoZone's Q4 expenses have shown a notable increase year-over-year, primarily driven by higher operating expenses and SG&A costs.

1. **Total Sales and Revenue Comparison**:
- AutoZone's total sales for Q4 increased by 2.1% year-over-year, reaching $4.28 billion in CY2024.
- This growth in sales was primarily driven by a 1.8% rise in total company same-store sales and contributions from new stores.
2. **Expense Components Analysis**:
- The company's gross margin improved by 16 basis points to 53%.
- Operating expenses, however, increased by 4.5%, which led to a 75 basis point deleveraging in SG&A.
- Net interest expense also rose to $107.6 million from $91.4 million.
3. **International Performance Impact**:
- International same-store sales saw a robust increase of 13.7% on a constant currency basis.
- Despite the positive trend in international sales, currency rate movements depressed reported sales and earnings growth.
4. **Store Expansion and Operational Investments**:
- AutoZone opened 23 net domestic stores and 11 international stores during the quarter.
- The company continued to invest in its business, including hub and mega hub expansions, with plans to accelerate international store openings to 200 per year by 2028.
5. **Financial Metrics Impact**:
- The GAAP profit per share (EPS) was $32.52, which was 3.3% below analysts’ consensus estimates.
- Net income decreased by 4.8% to $565 million, with a slight decrease in EPS of 0.1%.
6. **Cash Flow and Share Repurchases**:
- Free cash flow remained strong at $565 million, supporting continued share repurchases and investments.
- AutoZone repurchased $505 million worth of stock during the quarter.

In conclusion, AutoZone's Q4 expenses reflect strategic investments in store expansion and international growth, despite facing headwinds from currency fluctuations. The company's focus on growing its international footprint and maintaining strong gross margins is evident, although this comes with increased operational and interest expenses.