AutoZone 2014 Annual Report Download - page 6

Our Future
Our operating theme for 2015 is “WOW! Every Customer, Everywhere.” The theme builds on last year’s “Creating Customers for
Life” theme. Our goal is to not only meet our customers’ needs but also surpass their expectations by going the extra mile for them.
We have always understood there are choices our customers can make on where they shop, and we don’t take this for granted.
Every customer interaction is an opportunity for us to “surprise and delight” leading our customers’ to say “WOW!” or conversely, an
opportunity for us to disappoint a customer – an unacceptable outcome. We are building on our past successes and believe our future
continues to be quite bright.
For fiscal 2015, our key priorities are the same as last year. We will focus on: (1) Great People Providing Great Service; (2) Commercial
Growth; (3) Leveraging the Internet; (4) Leveraging Technology to improve the customer experience while optimizing efficiencies; and
(5) Improving Inventory Availability. Our approach remains one of consistency where superior execution is a competitive differentiator.
But, our approach must also evolve over time to meet and exceed our customers’ needs, and each of these efforts is focused on
enhancing our operations to provide a superior experience for all of our customers. We have a solid business model that is built on
delivering consistent financial results. This past quarter, we celebrated our 32nd consecutive quarter of double digit EPS growth, on
a year over year basis. We are very pleased with this amazing accomplishment but past success does not equate to future success.
We must continue to improve every facet of our business and we are committed to meeting or exceeding the ever changing needs
of our diverse customer base. As we think about the future, we intend to continue to grow new store square footage at an annual
rate of three to four percent and we expect to continue to grow our Commercial business at an accelerated rate. Therefore, we look
to routinely grow EBIT dollars in the low to mid-single digit range, or better in times of strength. And we will continue to leverage
our historically strong cash flows to repurchase shares in order to grow our earnings per share into double digits. We will invest in
initiatives that provide us with an appropriate return. Our Return on Invested Capital, at 31.9%, is one of the best in all of hardlines
retailing. We will continue to be good stewards of capital as we understand the capital we deploy is your capital.
Lastly, I want to thank our AutoZoners for their exceptional efforts in 2014. They have performed well in both good and more
challenging times. They embrace our culture with an intense passion to provide our customers with an exceptional experience.
As we begin 2015, we must continue to focus on our customers’ needs and exceed their expectations. We have an ambitious list of
objectives to accomplish in 2015, and we’re committed to delivering again in 2015. I would also like to thank our vendors for their
ongoing commitment to our collective success. Finally, I would like to thank you, our stockholders, for the confidence you have placed
in us by your decision to invest in our company. We remain committed to managing your capital wisely, achieving an appropriate return
on incremental projects and returning excess cash through an orderly share repurchase program.
We have a wonderful culture that has been built over the past 35 years. While we have performed well in the past, we have to remain
passionate about our Pledge, culture and values to earn our customers’ business. I continue to believe our best days are ahead.
Thank you for staying in the Zone with us for all these years.
We look forward to updating you on our continued success well into the future.
Sincerely,
Bill Rhodes
Chairman, President and CEO
Customer Satisfaction