O’Reilly Automotive reported 2022 sales of $14.41 billion, up 8% from $13.33 billion in 2021.
Comparable-store sales were up 6.4% for the full year, while diluted earnings per share were up 8% to $33.44.
Fourth-quarter sales were up 11% to $3.64 billion, while fourth-quarter comparable-store sales were up 9%.
“Our ability to continue to grow our business and capture market share year in and year out is a testament to our team’s commitment to providing excellent customer service, and we couldn’t be more pleased with how our team finished 2022,” O’Reilly CEO Greg Johnson said during the company’s Feb. 9 conference call.
O’Reilly’s third-quarter sales were up 9% on a year-over-year basis, and the momentum continued into the fourth quarter, which kicked off with “strong sales volumes” that continued through the end of 2022 on the DIFM and DIY sides of the business, according to O’Reilly Co-President Brad Beckham.
“As we finished the year, we saw broad-based strength across all of our markets in weather-related categories such as batteries, cooling and antifreeze, as well as our other core non-weather-related categories,” Beckham explained during the conference call. “We saw strength in both our DIY and professional businesses, with professional again leading the way with double-digit comparable-store sales growth on robust increases in both ticket counts and average ticket size.”
Looking back at the full year, Beckham said company leaders “are excited about the strength we built … in our professional business.” O’Reilly rolled out a companywide professional pricing initiative last February.
On the DIY side, O’Reilly was up against tough comps from the stimulus-driven sales boom of the pandemic.
“Our DIY ticket counts in 2022 were pressured in comparison to 2021 as we were still calendaring the impact of government stimulus and faced headwinds from gas-price shocks and inflation,” Beckham said. “We feel like we have now completely lapped the artificial spikes in demand and are pleased with the steady DIY traffic we saw in the back half of the year.
“While there has been a lot of volatility in our comparisons over the past three years, our overall growth in DIY ticket counts has been solidly positive in total during that timeframe. We have clearly taken market share since the onset of the pandemic through consistent execution and excellent service.”
The company’s full-year guidance for 2023 includes projected revenue between $15.2 billion and $15.5 billion, and comparable-store sales growth between 4% and 6%.
“The health of the automotive aftermarket continues to be supported by strength in the core fundamental drivers of demand, and the last few years have further reinforced the compelling value proposition that motivates consumers to invest in their vehicles,” Beckham said.
“ … We also have a positive outlook on the strength of the consumer in our industry and their ongoing willingness to prioritize their transportation needs. We continue to view the health of our customers as strong, supported by extremely low unemployment and robust growth in wages over the past two years. We think these factors provide a solid backdrop for growth and miles driven in our industry and solid demand over the next year.”