Q2 2024 O'Reilly Automotive Inc Earnings Call Transcript
Key Points
- O'Reilly Automotive Inc (ORLY) achieved a 2.3% increase in comparable store sales despite industry headwinds.
- The company reported a forecasted 7% increase in full-year EPS, reflecting strong execution in a challenging macro environment.
- Professional business continued to show strength with mid-single-digit comparable store sales growth, driven by robust ticket counts.
- O'Reilly Automotive Inc (ORLY) maintained its full-year gross margin guidance range of 51% to 51.5%, indicating confidence in cost management.
- The company successfully opened 27 new stores in the second quarter and remains on track to open 190 to 200 new stores in 2024, including expansion in Mexico and Canada.
- Second-quarter results were below expectations due to broader headwinds in the industry, impacting sales performance.
- Operating profit and earnings per share were negatively affected by the pressure on topline sales, leading to a revised full-year outlook.
- Gross margin of 50.7% was down 53 basis points from the second quarter of 2023, partly due to the acquisition of the Canadian business.
- DIY comparable store sales were down just shy of 1% for the quarter, indicating pressure on ticket counts in this segment.
- The company experienced sluggishness in certain undercar hard part categories, which performed below the company average.
Welcome to the O'Reilly Automotive, Inc., second-quarter 2024 earnings call. My name is Holly, and I will be your operator for today's call. (Operator Instructions)
I will now turn the call over to Jeremy Fletcher. Mr. Fletcher, you may begin.
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Thank you Holly. Good morning, everyone, and thank you for joining us.
During today's conference call, we will discuss our second-quarter 2024 results and our outlook for the remainder of the year. After our prepared comments, we will host a question-and-answer period.
Before we begin this morning, I would like to remind everyone that our comments today contain forward-looking statements, and we intend to be covered by, and we claim the protection under, the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as estimate, may,
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