O'Reilly Automotive Inc (ORLY, Financial), a leading retailer in the automotive aftermarket industry, announced record revenue for the fourth quarter and full-year ending December 31, 2024. This marks the 32nd consecutive year of comparable store sales growth since the company went public in 1993. The company reported a 4.4% increase in fourth-quarter comparable store sales and a 2.9% increase for the full year. The press release was issued on February 5, 2025.
Positive Highlights
- Fourth-quarter sales increased by 7% to $4.10 billion.
- Gross profit for the fourth quarter rose by 7% to $2.10 billion.
- Full-year sales increased by 6% to $16.71 billion.
- Successful opening of 198 new stores in 2024.
- Strong cash flow with $3.0 billion net cash provided by operating activities in 2024.
Negative Highlights
- Net income for the fourth quarter decreased by $1 million to $551 million.
- SG&A expenses increased by 9% in the fourth quarter.
- Self-insurance reserve adjustment impacted net income by $27 million.
Financial Analyst Perspective
O'Reilly Automotive's financial performance in 2024 demonstrates robust growth despite challenging market conditions. The company's ability to maintain a steady increase in comparable store sales and expand its store footprint is commendable. However, the rise in SG&A expenses and the impact of self-insurance reserve adjustments on net income are areas that require attention. The company's guidance for 2025, with expected revenue between $17.4 billion and $17.7 billion, indicates continued confidence in its growth strategy.
Market Research Analyst Perspective
O'Reilly Automotive's strategic expansion and focus on both professional and DIY markets have contributed to its sustained growth. The company's investment in new store openings and distribution center relocations positions it well for future market share gains. The automotive aftermarket industry remains competitive, and O'Reilly's ability to adapt to market dynamics and consumer preferences will be crucial in maintaining its leadership position.
Frequently Asked Questions
Q: What was the comparable store sales growth for the fourth quarter of 2024?
A: The comparable store sales growth for the fourth quarter of 2024 was 4.4%.
Q: How many new stores did O'Reilly Automotive open in 2024?
A: O'Reilly Automotive opened 198 new stores in 2024.
Q: What is the company's revenue guidance for 2025?
A: The company expects total revenue for 2025 to be between $17.4 billion and $17.7 billion.
Read the original press release here.
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