O’Reilly has record-breaking Q2

SPRINGFIELD, Mo. — O’Reilly Automotive achieved a record quarterly gross margin of 50.8% for the second quarter ended June 30, primarily driven by improvements in acquisition costs, product mix and pricing management, according to president and CEO Greg Henslee.

The automotive aftermarket industry retailer saw sales for the quarter rise to $1.71 billion, a 10% increase from $1.56 billion for the same period one year ago. Gross profit for the second quarter was $872 million, a 12% increase from $780 million for the same period one year ago.

The company reported net income for the quarter of $177 million, a 21 increase from $146 million for the same period one year ago. Diluted earnings per common share for the second quarter increased 37% to $1.58 on 112 million shares versus $1.15 for the same period one year ago on 127 million shares.

“We are very pleased to again report another record breaking quarter highlighted by a 37% increase in diluted earnings per share to $1.58, representing our 18th consecutive quarter of 15% or greater adjusted diluted earnings per share growth,” said Henslee. “We generated an impressive 6.5% increase in comparable store sales, which exceeded the top end of our quarterly guidance range of 4% to 6%. Our unwavering commitment to providing consistent, excellent customer service drove outstanding sales results across all of our markets. We achieved a record quarterly gross margin of 50.8%, primarily driven by improvements in acquisition costs, product mix and pricing management. Our relentless focus on expense control, along with our strong gross margin results, generated a record quarterly operating margin of 17.3%, which was a 170 basis point improvement over the prior year. We continue to believe in the strength of the long-term demand drivers in our industry, and we are establishing our third quarter comparable store sales guidance at 4% to 6% and reiterating our full-year comparable store sales guidance of 3% to 5%. I would like to take this opportunity to thank each of our 60,000 team members for their hard work and commitment to O’Reilly’s continued success.”

Sales for the first six months of 2013 increased 7% to $3.30 billion from $3.09 billion for the same period one year ago. Gross profit for the first six months of 2013 increased 8% to $1.67 billion from $1.54 billion for the same period one year ago. Net income for the first six months of 2013 increased 13% to $331 million from $294 million for the same period one year ago. Diluted earnings per common share for the first six months of 2013 increased 28% to $2.94 on 113 million shares versus $2.29 for the same period one year ago on 128 million shares.

Comparable store sales increased 6.5% for the quarter, versus 2.5% for the same period one year ago. Comparable store sales increased 3.6% for the first six months of 2013, versus 4.9% for the same period one year ago.

Henslee stated that the company is on track to meet its goal of 190 new stores in 2013 with the opening of 111 stores across 30 states in the first half of the year.

Founded in 1957 by the O’Reilly family, the company currently operates 4,087 stores in 42 states. It is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both the do-it-yourself and professional service provider markets.