O’Reilly Automotive has announced record revenue and earnings for its fourth quarter and full-year ended Dec. 31, 2022. The results represent 30 consecutive years of comparable stores sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993.
Fourth Quarter Financial Results
Greg Johnson, O’Reilly’s CEO, commented, “We are very pleased to once again report a strong quarter, highlighted by 9% growth in comparable store sales and a 10% increase in diluted earnings per share. Team O’Reilly once again exceeded our expectations and delivered robust top-line growth on top of a record-breaking 14.5% comp in the prior year, which resulted in an incredible three-year comparable store sales stack of 34.7% for the fourth quarter. Our consistently strong growth is the direct result of the hard work and dedication of our entire team. We continually evaluate the compensation and benefits we provide to our team members to ensure we are attracting and developing the best professional parts people in the industry. In line with this commitment to our Team, we recognized a $28 million SG&A charge in the fourth quarter, resulting from our transition to an enhanced paid time-off program. We believe investing in Team O’Reilly will continue to drive our industry-leading customer service, while also creating tremendous opportunities for our team members to grow and share in our company’s success. I would like to thank our over 85,000 team members for their ongoing dedication to our continued profitable growth and for their unrelenting focus on providing excellent customer service.”
Sales for the fourth quarter increased $353 million, or 11%, to $3.64 billion from $3.29 billion for the same period one year ago. Gross profit for the fourth quarter increased 7% to $1.85 billion (or 50.9% of sales) from $1.73 billion (or 52.7% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 10% to $8.37 on 63 million shares versus $7.64 on 68 million shares for the same period one year ago.
Full-Year Financial Results
Johnson continued, “Our strong performance in the fourth quarter capped another successful year for our company and drove our full-year 2022 comparable store sales growth to 6.4%, resulting in a full-year diluted earnings per share increase of 8% to $33.44 and an incredible three-year compounded annual growth rate of 23%. As we look forward to 2023, we believe the long-term drivers for demand in our industry remain solid, and we remain very confident in our Team’s ability to gain market share by providing unsurpassed levels of service to our customers and successfully executing our proven dual-market business model.”
Sales for the year ended Dec. 31, 2022, increased $1.08 billion, or 8%, to $14.41 billion from $13.33 billion for the same period one year ago. Gross profit for the year increased 5% to $7.38 billion (or 51.2% of sales) from $7.02 billion (or 52.7% of sales) for the same period one year ago. Diluted earnings per common share for the year ended Dec. 31, 2022, increased 8% to $33.44 on 65 million shares versus $31.10 on 70 million shares for the same period one year ago.
