O’Reilly Automotive driving record growth
O’Reilly Automotive plans to accelerate its expansion plans in 2016 following record revenue and profit in the third quarter.
The auto parts retailer now plans to open 210 new stores next year. The company is also on track to open 205 new stores by the end of 2015.
“We are extremely proud to report another very successful quarter, highlighted by a 7.9% increase in comparable store sales and a record high operating margin of 20.0%,” said O’Reilly president and CEO Greg Henslee. “Our industry leading comparable store sales results this quarter represent our eighth consecutive quarter of comparable store sales growth greater than 5%, with an especially robust increase of over 7% in each quarter of this year. This consistently strong performance is the direct result of our Team Members’ commitment to providing excellent customer service every day in all of our stores, and I would like to thank each of our over 72,000 Team Members for their hard work and dedication to our ongoing success.”
The auto parts industry is seen as a bright spot in retail for three reasons: Americans are keeping their aging cars longer; the technology in new cars has been a boost in sales; and auto parts retailers have so far proven immune to the e-commerce threat that has plagued other merchants.
At O’Reilly, total sales for the third quarter ended Sept. 30 increased $203 million, or 11%, to $2.08 billion from $1.88 billion for the same period one year ago. Gross profit for the third quarter increased to $1.09 billion (or 52.4% of sales) from $968 million (or 51.6% of sales) for the same period one year ago, representing an increase of 13%. Net income increased $49 million, or 23%, to $266 million (or 12.8% of sales) from $217 million (or 11.6% of sales) for the same period one year ago. Diluted earnings per share increased 28% to $2.64 on 101 million shares versus $2.06 on 105 million shares for the same period one year ago.
“In October, we expanded into our 44th state with the opening of two stores in Connecticut,” Henslee added. “We continue to be very pleased with the performance of our new store openings, staffed with great Teams who provide excellent customer service, and we remain very confident in the long-term drivers for demand in our industry. We are very proud of our long record of consistently strong and profitable growth, and we remain focused on continuing to provide unsurpassed levels of service to our customers into the future.”
O'Reilly Automotive, Inc. operates 4,523 stores in 43 states.