What caused AZO's net profit decline in Q1 2025?

AutoZone Inc. (AZO) experienced a decline in net income in Q1 2025, which can be attributed to several factors:

1. **Foreign Currency Exchange Rates**: The company faced an unfavorable foreign currency exchange rate environment, which had a negative impact on its net income. This was particularly evident in the international segment, where same-store sales decreased by 8.2%.
2. **Non-Cash LIFO Adjustments**: The decline in net income was also influenced by non-cash LIFO adjustments, which were more favorable in the previous year quarter. This adjustment is a accounting method used to account for inventory valuation and is not directly related to the company's operating performance, but it does impact the net income calculation.
3. **Increased Operating Expenses**: Operating expenses increased by 6.4% during the quarter, leading to a 134 basis point deleverage in SG&A as a percentage of sales. This increase in operating expenses contributed to the decline in net income.

In summary, the decline in AutoZone's net income in Q1 2025 was primarily caused by unfavorable foreign currency exchange rates, non-cash LIFO adjustments, and increased operating expenses.