O’Reilly Automotive reported record revenue and earnings for its second quarter, which ended June 30.
Second-quarter sales were $4.07 billion, up 11% from second-quarter 2022. Gross profit increased 11% to nearly $2.1 billion.
Diluted earnings per common share increased 16% to $10.22 on 61 million shares, versus $8.78 on 66 million shares for second-quarter 2022.
Comparable-store sales jumped 9% year-over-year.
“Team O’Reilly’s commitment to providing consistently excellent customer service drove robust double-digit professional and solid DIY comparable-store sales growth in the quarter,” O’Reilly CEO Greg Johnson said in a news release. “I want to congratulate our over 88,000 dedicated team members on their incredible performance in the second quarter and express my sincere appreciation for their relentless focus on delivering industry-leading service to our customers each and every day.”
Sales for the first six months of 2023 increased 12% to $7.78 billion compared to the first six months of 2022.
“The strong top-line performance we delivered through the first half of the year exceeded our expectations, and we remain pleased with our performance thus far in July,” Johnson said. “We believe the core underlying demand drivers of our industry remain solid, and more importantly, we remain confident in our team’s ability to consistently execute our proven dual market strategy and expand our market share.”
The year-to-date results “and continued robust sales trends” prompted O’Reilly to boost its full-year comparable-store sales guidance from a range of 4% to 6% to a range of 5% to 7%.
New DC in Mexico
So far in 2023, O’Reilly has opened 100 net new stores across 34 U.S. states, Puerto Rico and Mexico and is on pace to meet the company’s goal of opening 180 to 190 net new store openings this year, according to Johnson.
In July, O’Reilly opened its first distribution center in Mexico.
“This new, 370,000-square-foot facility strengthens our existing store network with enhanced inventory availability, empowering higher service levels and establishing the critical foundation for long-term store growth in Mexico,” Johnson said.