O'Reilly Automotive reported a solid third quarter with record revenue and earnings, driven by strong comparable store sales growth and effective execution of their business model.
Comparable store sales increased 5.6% for the third quarter.
positiveDiluted earnings per share increased 12% to $0.85.
positiveGross profit increased 8% to $2.44 billion, with gross margin expanding 30bps to 51.9%.
positiveOperating income increased 9% to $976 million, with operating margin expanding 20bps to 20.7%.
positiveSG&A expenses increased 8% to $1.46 billion, slightly outpacing sales growth and resulting in a 10bps compression in SG&A as a percentage of sales.
attentionYear-to-date operating income increased only 5% to $2.63 billion, lagging behind revenue growth of 6% and indicating some margin pressure over the longer term.
attentionInventory turnover decreased from 1.7 to 1.6 year-over-year, suggesting slower inventory movement.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
The Team continues to execute our proven business model at a very high level, generating robust sales growth by delivering share gains on both sides of our business.
Team O’Reilly’s commitment to providing unparalleled service to our customers drove our strong results.
We are pleased to report another quarter of solid performance and profitable growth.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.