AutoZone stock on pace for worst trading day since May 2022

Auto parts stocks

Wall Street analysts also questioned executives Tuesday about continued pressures on the business from inflation, energy costs and potential supply chain disruptions caused by the Iran war, specifically possible shortages of motor oil.

AutoZone executives said they expect inflationary pressures to continue but be “slightly muted” due to year-over-year comparisons. They also werent overly concerned about potential problems with supplies of lubricants such as motor oil that are reportedly impacting dealer operations at and Nissan Motor.

“The issue around lubricants, I know there‘s a lot of noise out there. We’re going to leave that up to the oil specialists to really say what that means. We think there‘s probably going to be some constraints, but we don’t think that its going to be that material,” Daniele said.

Automotive website The Drive reported both and Toyota have recently issued service bulletins to dealers with instructions on rationing motor oil stocks due to an impending shortage.

A Toyota spokesman said the company has “nothing more to add on this issue at this time.” A spokeswoman for Nissan said the automaker “is navigating supplier constraints affecting lubricant availability.”

“Currently, we are maintaining current pricing and have implemented temporary allocation measures to help ensure consistent supply across our dealer network. Were also working with supplier partners to identify additional sourcing. Our priority remains supporting our dealers to ensure an exceptional customer experience,” the Nissan spokeswoman said in an emailed statement.

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