O’Reilly Automotive has announced record revenues and earnings for its second quarter ended June 30, 2019.

Sales for the second quarter ended June 30, 2019, increased $134 million, or 5%, to $2.59 billion from $2.46 billion for the same period one year ago. Gross profit for the second quarter increased 6% to $1.37 billion (or 52.8% of sales) from $1.29 billion (or 52.5% of sales) for the same period one year ago.  

Net income for the second quarter increased $1 million to $354 million (or 13.7% of sales) from $353 million (or 14.4% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 5% to $4.51 on 78 million shares versus $4.28 on 83 million shares for the same period one year ago.

According to Greg Johnson, O’Reilly’s CEO and co-president, recent weather had an impact on numbers for the quarter.

“For the quarter, our comparable stores sales growth was 3.4%, which was in the lower end of our 3% to 5% guidance range as unseasonably cool and rainy weather in many of our markets was a headwind to summer, heat related categories,” said Johnson. “The challenging weather also caused significant delays in construction and new store openings, resulting in lower than planned non-comparable store sales volumes for the quarter. As a result of these top-line headwinds and continued pressure to SG&A, our diluted earnings per share for the second quarter of $4.51 came in $0.04 below our guidance range. Despite the challenges we have seen in the seasonal demand environment thus far in 2019, we remain confident in the solid demand drivers supporting our industry and in our team’s ability to provide unsurpassed levels of service to our customers, and as a result, we are maintaining our full-year comparable store sales guidance at a range of 3% to 5%.”

Year-to-Date Financial Results

Sales for the first six months of 2019 increased $262 million, or 6%, to $5 billion from $4.74 billion for the same period one year ago. Gross profit for the first six months of 2019 increased 6% to $2.65 billion (or 52.9% of sales) from $2.49 billion (or 52.5% of sales) for the same period one year ago.  

Net income for the first six months of 2019 increased $17 million, or 3%, to $675 million (or 13.5% of sales) from $658 million (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2019 increased 8% to $8.56 on 79 million shares versus $7.89 on 83 million shares for the same period one year ago.

Johnson continued, “During the second quarter, we opened 43 stores across 15 states, which was short of our planned openings for the period as a result of the wet weather conditions; however, the delays we experienced in the second quarter are temporary and we still expect to open at least 200 net, new stores in 2019. Our distribution network expansion projects continue to progress on schedule, with the anticipated opening of our 28th distribution center in Twinsburg, Ohio, during the fourth quarter of this year. Continually investing to enhance our distribution capabilities has allowed us to deliver excellent customer service and drive sustained, profitable store growth, and we remain committed to providing best-in-class parts availability, unparalleled technical knowledge and unsurpassed service levels to our customers.”

Share-Repurchase Program

During the second quarter, the company repurchased 1.6 million shares of its common stock, at an average price per share of $366.76, for a total investment of $599 million. During the first six months ended 2019, the company repurchased 2.6 million shares of its common stock, at an average price per share of $359.63, for a total investment of $921 million. Subsequent to the end of the second quarter and through the date of this release, the company repurchased an additional 0.2 million shares of its common stock, at an average price per share of $380.79, for a total investment of $63 million. 

Since the inception of this share repurchase program in January 2011, the company has repurchased a total of 75 million shares of its common stock at an average price of $156.36, for a total aggregate investment of $11.73 billion. The company has approximately $1.02 billion remaining under its current share repurchase authorizations.