O'Reilly Automotive is on Track to Open 180 Stores in 2023

O’Reilly Automotive is on Track to Open 180 Stores in 2023

O'Reilly has opened 100 net, new stores across 34 U.S. states, Puerto Rico and Mexico so far in 2023.

O’Reilly Automotive, Inc. announced its earnings for the second quarter, which ended June 30, 2023. The company reported sales for the second quarter increased $398 million, or 11%, to $4.07 billion from $3.67 billion for
the same period one year ago.

Greg Johnson, O’Reilly’s CEO, said, that O’Reilly has opened 100 net, new stores across 34 U.S. states, Puerto Rico and Mexico so far in 2023 and is on pace to meet its goal of 180 to 190 net, new store openings in 2023.

He added, “We are very pleased to report another quarter of continued strong growth, highlighted by a 9% increase in comparable store sales and a 16% increase in diluted earnings per share to $10.22. Team O’Reilly’s commitment to providing consistently excellent customer service drove robust double-digit professional and solid DIY comparable store sales growth in the quarter. I want to congratulate our over 88,000 dedicated team members on their incredible performance in the second quarter and express my sincere appreciation for their relentless focus on delivering industry-leading service to our customers each and every day.”

He added: “We continue to be very pleased with our new store performance, driven by our well-trained and technically-proficient professional parts people. We are also excited to celebrate the expansion of our distribution network with the opening of our first O’Reilly distribution center in Mexico in July. This new, 370,000-square-foot facility strengthens our existing store network with enhanced inventory availability, empowering higher service levels and establishing the critical foundation for long-term store growth in Mexico.”

Gross profit for the second quarter increased 11% to $2.09 billion (or 51.3% of sales) from $1.88 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses for the second quarter increased 14% to $1.23 billion (or 30.3% of sales) from $1.09 billion (or 29.6% of sales) for the same period one year ago.

Operating income for the second quarter increased 7% to $854 million (or 21% of sales) from $799
million (or 21.8% of sales) for the same period one year ago. Net income for the second quarter increased $51 million, or 9%, to $627 million (or 15.4% of sales) from $577 million (or 15.7% of sales) for the same period one year ago.

In 2023, sales for the first six months increased $810 million, or 12%, to $7.78 billion from $6.97 billion for the same period one year ago. Gross profit for the first six months of 2023 increased 11% to $3.98 billion (or 51.1% of sales) from $3.59 billion (or 51.6% of sales) for the same period one year ago. SG&A increased 13% to $2.41 billion (or 30.9% of sales) from $2.12 billion (or 30.5% of sales) for the same period one year ago. Operating income increased 7% to $1.57 billion (or 20.2% of sales) from $1.47 billion (or 21.1% of sales) for the same period one year ago. Net income for the first six months of 2023 increased $86 million, or 8%, to $1.14 billion (or 14.7% of sales) from $1.06
billion (or 15.2% of sales) for the same period one year ago.

Johnson concluded: “The strong top-line performance we delivered through the first half of the year exceeded our
expectations, and we remain pleased with our performance thus far in July. We believe the core underlying demand drivers of our industry remain solid, and more importantly, we remain confident in our team’s ability to consistently execute our proven dual market strategy and expand our market share. Based on our strong year-to-date results and continued robust sales trends, we are increasing our full-year comparable store sales guidance from a range of 4% to 6% to a range of 5% to 7%. Finally, I would like to again thank Team O’Reilly for delivering strong results in the first half of 2023 – your commitment to our customers remains the key to O’Reilly’s ongoing success.”

Q2 Comparable Store Sales Results

Comparable store sales increased 9% for the second quarter on top of 4.3% for the same period one year ago. Comparable store sales increased 9.8% for the six months ending June 30, 2023, on top of 4.5% for the same
period one year ago, O’Reilly reported.

The company said comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores and sales to team members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation.

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