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AutoZone (NYSE:AZO) and O’Reilly Automotive (NASDAQ:ORLY) both broke higher in Tuesday trading as harsh winter weather across a broad part of the U.S. raised confidence the retailers could get a boost. Icy winter weather was seen over the weekend from the Midwest to the Atlantic Coast, leading to reports of thousands of vehicles stranded on roads.
AutoZone (AZO) management has noted several times during earnings conference calls that extreme weather can have a “tremendous” impact on weekly sales as vehicles need more service. The company is lapping a quarter from a year ago when it saw mild winter weather impact results. During O’Reilly Automotive’s (ORLY) earnings calls following the winter quarter, management typically points to demand trends with batteries, accessories, engine cooling products, and antifreeze as being impacted by the overall weather.
Shares of AutoZone (AZO) were 2.85% higher at 11:03 a.m. on Tuesday and O’Reilly Automotive (ORLY) showed a 2.78% gain. The Seeking Alpha Quant Rating on AutoZone (AZO) is flashing Buy, while the Quant Rating on O’Reilly Automotive (ORLY) is at Hold. Seeking Alpha analysts have consensus Buy ratings on both of the auto retail stocks.
In the footwear sector, Birkenstock (BIRK) +2.55%, Deckers Outdoor (DECK) +1.85%, and Canada Goose (GOOS) +1.05% also showed small gains as is typical during periods of harsh winter weather headlines.
