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O’Reilly Automotive, Inc. Reports Third Quarter 2024 Results

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O'Reilly Automotive (ORLY) reported Q3 2024 results with revenue increasing 4% to $4.36 billion and comparable store sales growth of 1.5%. Net income rose 2% to $665 million, with diluted EPS up 6% to $11.41. The company updated its full-year 2024 guidance, tightening comparable store sales expectations to 2.0-3.0% from previous 2.0-4.0%. Gross profit increased 4% to $2.25 billion, while operating income remained flat at $897 million. During Q3, the company repurchased 0.5 million shares for $541 million and operated 6,291 stores across U.S., Puerto Rico, Mexico, and Canada.

O'Reilly Automotive (ORLY) ha riportato i risultati del terzo trimestre 2024 con un aumento del fatturato del 4% a 4,36 miliardi di dollari e una crescita delle vendite nei negozi comparabili dell'1,5%. L'utile netto è aumentato del 2% a 665 milioni di dollari, con l’EPS diluito in crescita del 6% a 11,41 dollari. L'azienda ha aggiornato le previsioni per l'intero anno 2024, restringendo le aspettative di vendita nelle stesse attività a un range del 2,0-3,0% rispetto al precedente 2,0-4,0%. Il profitto lordo è aumentato del 4% a 2,25 miliardi di dollari, mentre l'utile operativo è rimasto stabile a 897 milioni di dollari. Durante il terzo trimestre, l'azienda ha riacquistato 0,5 milioni di azioni per 541 milioni di dollari e gestito 6.291 negozi negli Stati Uniti, Porto Rico, Messico e Canada.

O'Reilly Automotive (ORLY) reportó los resultados del tercer trimestre de 2024, con un aumento del 4% en los ingresos, alcanzando 4.36 mil millones de dólares y un crecimiento en ventas de tiendas comparables del 1.5%. El ingreso neto aumentó un 2% hasta 665 millones de dólares, y las ganancias por acción diluidas subieron un 6% a 11.41 dólares. La compañía actualizó su guía para el año completo 2024, ajustando las expectativas de ventas en tiendas comparables a un rango del 2.0-3.0% en lugar del anterior 2.0-4.0%. El beneficio bruto aumentó un 4% a 2.25 mil millones de dólares, mientras que el ingreso operativo se mantuvo plano en 897 millones de dólares. Durante el tercer trimestre, la empresa recompró 0.5 millones de acciones por 541 millones de dólares y operó 6,291 tiendas en EE. UU., Puerto Rico, México y Canadá.

오라일리 오토모티브 (ORLY)는 2024년 3분기 실적을 발표하며 수익이 4% 증가하여 43억 6천만 달러에 이르고, 비교 가능한 매장 판매는 1.5% 성장했습니다. 순이익은 2% 증가하여 6억 6천 5백만 달러로, 희석 주당순이익(EPS)은 6% 증가하여 11.41 달러에 도달했습니다. 회사는 2024년 전체 연도 가이던스를 업데이트하며 비교 가능한 매장 판매 전망을 이전의 2.0-4.0%에서 2.0-3.0%로 축소했습니다. 총 이익은 4% 증가하여 22억 5천만 달러에 이르고, 운영 이익은 8억 9천 7백만 달러로 변동이 없었습니다. 3분기 동안, 회사는 5억 4천 1백만 달러에 50만 주를 재매입했으며, 미국, 푸에르토리코, 멕시코 및 캐나다에서 6,291개의 매장을 운영했습니다.

O'Reilly Automotive (ORLY) a annoncé ses résultats pour le 3e trimestre 2024, avec des revenus en hausse de 4% à 4,36 milliards de dollars et une croissance des ventes dans les magasins comparables de 1,5%. Le bénéfice net a augmenté de 2% à 665 millions de dollars, avec un BPA dilué en hausse de 6% à 11,41 dollars. L'entreprise a mis à jour ses prévisions pour l'année entière 2024, en resserrant les attentes de ventes dans les magasins comparables à 2,0-3,0% contre 2,0-4,0% auparavant. Le bénéfice brut a augmenté de 4% à 2,25 milliards de dollars, tandis que le résultat d'exploitation est resté stable à 897 millions de dollars. Au cours du 3e trimestre, la société a racheté 0,5 million d'actions pour 541 millions de dollars et a exploité 6 291 magasins aux États-Unis, à Porto Rico, au Mexique et au Canada.

O'Reilly Automotive (ORLY) hat die Ergebnisse des 3. Quartals 2024 veröffentlicht, wobei der Umsatz um 4% auf 4,36 Milliarden Dollar gestiegen ist und das Wachstum der vergleichbaren Einzelhandelsumsätze 1,5% betrug. Der Nettogewinn stieg um 2% auf 665 Millionen Dollar, während der verwässerte Gewinn pro Aktie um 6% auf 11,41 Dollar anstieg. Das Unternehmen aktualisierte seine Prognose für das Gesamtjahr 2024 und passte die Erwartungen an den vergleichbaren Einzelhandelsumsatz auf 2,0-3,0% von zuvor 2,0-4,0% an. Der Bruttogewinn erhöhte sich um 4% auf 2,25 Milliarden Dollar, während das Betriebsergebnis bei 897 Millionen Dollar stabil blieb. Im 3. Quartal kaufte das Unternehmen 0,5 Millionen Aktien für 541 Millionen Dollar zurück und betrieb 6.291 Geschäfte in den USA, Puerto Rico, Mexiko und Kanada.

Positive
  • Revenue increased 4% to $4.36 billion in Q3 2024
  • Net income grew 2% to $665 million
  • Diluted EPS increased 6% to $11.41
  • Gross profit margin improved to 51.6% from 51.4% year-over-year
  • Strong professional business growth and market share gains
Negative
  • Comparable store sales growth slowed to 1.5% vs 8.7% in prior year
  • Operating margin declined to 20.5% from 21.3% year-over-year
  • SG&A expenses increased 7%, outpacing revenue growth
  • Lowered full-year comparable store sales guidance
  • Faced broad-based consumer pressures and soft demand environment

Insights

O'Reilly's Q3 results reveal a mixed performance with some concerning trends. The 1.5% comparable store sales growth shows significant deceleration from previous years' robust growth of 8.7% and 7.6%. Operating margin compression is evident, declining from 21.3% to 20.5% year-over-year. While revenue grew 4% to $4.36 billion, operating income remained flat at $897 million.

The company's aggressive share buyback program continues, with $541 million spent in Q3 alone, helping boost EPS by 6% despite only a 2% increase in net income. The reduced full-year comparable sales guidance to 2-3% from 2-4% signals ongoing challenges in both professional and DIY segments. The rising SG&A costs as a percentage of sales warrant attention, potentially impacting future profitability.

The automotive aftermarket sector is showing signs of pressure, with O'Reilly's results indicating broader industry challenges. Consumer spending constraints are affecting both DIY and professional segments, though the company continues to gain market share in the professional business. The reduced guidance suggests a cautious outlook for the remainder of 2024, reflecting broader economic headwinds.

Despite current headwinds, O'Reilly maintains strong cash generation with $2.4 billion in operating cash flow year-to-date. The company's expansion continues with 190-200 new stores planned, demonstrating confidence in long-term industry fundamentals. The maintained gross margin of 51.6% indicates pricing power and effective inventory management despite inflationary pressures.

  • Third quarter comparable store sales growth of 1.5%
  • 6% increase in third quarter diluted earnings per share to $11.41
  • $2.4 billion net cash provided by operating activities year-to-date

SPRINGFIELD, Mo., Oct. 23, 2024 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its third quarter ended September 30, 2024.

3rd Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “Our comparable store sales increased 1.5% in the third quarter, as we faced broad-based consumer pressures and a soft demand environment on both the professional and DIY sides of our business. While our third quarter results were below our expectations, we are pleased with our Team’s unwavering dedication to our customers and their ability to still deliver positive comparable store sales results in tough conditions, on top of the robust 8.7% and 7.6% increases we generated in the third quarter the last two years. We are also pleased to have generated another strong quarter of sales growth in our professional business, where we continue to gain market share. We remain very confident in the strength of the long-term, core drivers of demand in our industry, as well as our Team’s ability to outpace the market. I would like to express my appreciation to our over 92,000 Team Members for their unrelenting hard work and commitment to providing industry-leading service to our customers.”

Sales for the third quarter ended September 30, 2024, increased $161 million, or 4%, to $4.36 billion from $4.20 billion for the same period one year ago. Gross profit for the third quarter increased 4% to $2.25 billion (or 51.6% of sales) from $2.16 billion (or 51.4% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the third quarter increased 7% to $1.35 billion (or 31.0% of sales) from $1.26 billion (or 30.1% of sales) for the same period one year ago. Operating income for the third quarter was $897 million (or 20.5% of sales), which was flat compared to $897 million (or 21.3% of sales) for the same period one year ago.

Net income for the third quarter ended September 30, 2024, increased $16 million, or 2%, to $665 million (or 15.2% of sales) from $650 million (or 15.5% of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 6% to $11.41 on 58 million shares versus $10.72 on 61 million shares for the same period one year ago.

Year-to-Date Financial Results
Mr. Beckham concluded, “We are tightening our full-year comparable store sales guidance from a range of 2.0% to 4.0% to a range of 2.0% to 3.0%, to reflect our performance so far this year and expectations for the remainder of 2024. We remain very confident in Team O’Reilly and their ability to consistently execute our proven dual market strategy and gain market share by relentlessly focusing on providing the highest levels of service in the industry, supported by best-in-class parts availability.”

Sales for the first nine months of 2024 increased $633 million, or 5%, to $12.61 billion from $11.98 billion for the same period one year ago. Gross profit for the first nine months of 2024 increased 5% to $6.45 billion (or 51.2% of sales) from $6.14 billion (or 51.2% of sales) for the same period one year ago. SG&A for the first nine months of 2024 increased 7% to $3.94 billion (or 31.2% of sales) from $3.67 billion (or 30.6% of sales) for the same period one year ago. Operating income for the first nine months of 2024 increased 2% to $2.51 billion (or 19.9% of sales) from $2.47 billion (or 20.6% of sales) for the same period one year ago.

Net income for the first nine months of 2024 increased $41 million, or 2%, to $1.84 billion (or 14.6% of sales) from $1.79 billion (or 15.0% of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2024 increased 7% to $31.14 on 59 million shares versus $29.20 on 61 million shares for the same period one year ago.

3rd Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day in the nine months ended September 30, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 1.5% for the third quarter ended September 30, 2024, on top of 8.7% for the same period one year ago. Comparable store sales increased 2.4% for the nine months ended September 30, 2024, on top of 9.4% for the same period one year ago.

Share Repurchase Program
During the third quarter ended September 30, 2024, the Company repurchased 0.5 million shares of its common stock, at an average price per share of $1,084.28, for a total investment of $541 million. During the first nine months of 2024, the Company repurchased 1.5 million shares of its common stock, at an average price per share of $1,038.32, for a total investment of $1.60 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $16.0 million for the nine months ended September 30, 2024. Subsequent to the end of the third quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,170.55, for a total investment of $70 million. The Company has repurchased a total of 95.7 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $259.72, for a total aggregate investment of $24.85 billion. As of the date of this release, the Company had approximately $898 million remaining under its current share repurchase authorization.

Updated Full-Year 2024 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2024 financial data:

     For the Year Ending
  December 31, 2024
Net, new store openings 190 to 200
Comparable store sales 2.0% to 3.0%
Total revenue $16.6 billion to $16.8 billion
Gross profit as a percentage of sales 51.0% to 51.5%
Operating income as a percentage of sales 19.4% to 19.9%
Effective income tax rate 21.8%
Diluted earnings per share (1) $40.60 to $41.10
Net cash provided by operating activities $2.7 billion to $3.1 billion
Capital expenditures $900 million to $1.0 billion
Free cash flow (2) $1.8 billion to $2.1 billion
   

(1)   Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2)   Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:

  For the Year Ending
(in millions) December 31, 2024
Net cash provided by operating activities $2,730 to $3,140
Less:Capital expenditures  900 to  1,000
 Excess tax benefit from share-based compensation payments  30 to  40
Free cash flow $1,800 to $2,100


Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information
The Company will host a conference call on Thursday, October 24, 2024, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 560004. A replay of the conference call will be available on the Company’s website through Thursday, October 23, 2025.

About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and 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. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of September 30, 2024, the Company operated 6,291 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

  
For further information contact:Investor Relations Contacts
 Leslie Skorick (417) 874-7142
 Eric Bird (417) 868-4259
  
 Media Contact
 Sonya Cox (417) 829-5709


 
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
          
  September 30, 2024 September 30, 2023 December 31, 2023
     (Unaudited)    (Unaudited)    (Note)
Assets         
Current assets:         
Cash and cash equivalents $ 115,613  $82,664  $279,132 
Accounts receivable, net   401,950   399,654   375,049 
Amounts receivable from suppliers   154,300   156,727   140,443 
Inventory   4,913,237   4,631,511   4,658,367 
Other current assets   113,187   107,156   105,311 
Total current assets   5,698,287   5,377,712   5,558,302 
          
Property and equipment, at cost   8,969,137   8,136,342   8,312,367 
Less: accumulated depreciation and amortization   3,532,755   3,248,165   3,275,387 
Net property and equipment   5,436,382   4,888,177   5,036,980 
          
Operating lease, right-of-use assets   2,269,929   2,213,884   2,200,554 
Goodwill   997,226   895,399   897,696 
Other assets, net   175,698   176,666   179,463 
Total assets $ 14,577,522  $13,551,838  $13,872,995 
          
Liabilities and shareholders’ deficit         
Current liabilities:         
Accounts payable $ 6,359,619  $6,199,816  $6,091,700 
Self-insurance reserves   123,505   128,892   128,548 
Accrued payroll   141,361   124,040   138,122 
Accrued benefits and withholdings   201,351   170,550   174,650 
Income taxes payable   206,776   325,693   7,860 
Current portion of operating lease liabilities   408,571   385,942   389,536 
Other current liabilities   743,982   496,149   730,937 
Total current liabilities   8,185,165   7,831,082   7,661,353 
          
Long-term debt   5,359,810   5,102,350   5,570,125 
Operating lease liabilities, less current portion   1,938,162   1,895,991   1,881,344 
Deferred income taxes   325,869   282,894   295,471 
Other liabilities   207,580   199,990   203,980 
          
Shareholders’ equity (deficit):         
Common stock, $0.01 par value:         
Authorized shares – 245,000,000         
Issued and outstanding shares –         
57,838,920 as of September 30, 2024,         
59,621,138 as of September 30, 2023, and         
59,072,792 as of December 31, 2023   578   596   591 
Additional paid-in capital   1,449,447   1,341,163   1,352,275 
Retained deficit   (2,875,955)  (3,132,517)  (3,131,532)
Accumulated other comprehensive (loss) income   (13,134)  30,289   39,388 
Total shareholders’ deficit   (1,439,064)  (1,760,469)  (1,739,278)
          
Total liabilities and shareholders’ deficit $ 14,577,522  $13,551,838  $13,872,995 
             

Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.


 
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
             
  For the Three Months Ended  For the Nine Months Ended
  September 30,  September 30, 
     2024     2023     2024     2023 
Sales $ 4,364,437  $4,203,380  $ 12,612,878  $11,980,235 
Cost of goods sold, including warehouse and distribution expenses   2,113,212   2,042,917    6,159,421   5,842,861 
Gross profit   2,251,225   2,160,463    6,453,457   6,137,374 
             
Selling, general and administrative expenses   1,354,497   1,263,241    3,940,950   3,669,734 
Operating income   896,728   897,222    2,512,507   2,467,640 
             
Other income (expense):            
Interest expense   (55,166)  (51,361)   (167,145)  (145,520)
Interest income   2,055   1,292    5,239   2,920 
Other, net   4,304   (486)   9,266   8,179 
Total other expense   (48,807)  (50,555)   (152,640)  (134,421)
             
Income before income taxes   847,921   846,667    2,359,867   2,333,219 
Provision for income taxes   182,457   196,840    524,317   539,142 
Net income $ 665,464  $649,827  $ 1,835,550  $1,794,077 
             
Earnings per share-basic:            
Earnings per share $ 11.47  $10.82  $ 31.34  $29.46 
Weighted-average common shares outstanding – basic   57,998   60,082    58,563   60,905 
             
Earnings per share-assuming dilution:            
Earnings per share $ 11.41  $10.72  $ 31.14  $29.20 
Weighted-average common shares outstanding – assuming dilution   58,335   60,590    58,942   61,445 


 
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
       
  For the Nine Months Ended
  September 30, 
  2024  2023 
Operating activities:      
Net income $ 1,835,550  $1,794,077 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization of property, equipment and intangibles   339,324   296,583 
Amortization of debt discount and issuance costs   4,870   3,597 
Deferred income taxes   8,536   35,982 
Share-based compensation programs   21,600   21,948 
Other   5,928   3,574 
Changes in operating assets and liabilities:      
Accounts receivable   (9,175)  (58,658)
Inventory   (212,491)  (263,896)
Accounts payable   252,454   315,910 
Income taxes payable   198,780   353,366 
Other   (20,287)  15,172 
Net cash provided by operating activities   2,425,089   2,517,655 
       
Investing activities:      
Purchases of property and equipment   (732,916)  (753,958)
Proceeds from sale of property and equipment   10,268   10,461 
Investment in tax credit equity investments     (4,150)
Other, including acquisitions, net of cash acquired   (160,960)  (2,126)
Net cash used in investing activities   (883,608)  (749,773)
       
Financing activities:      
Proceeds from borrowings on revolving credit facility   30,000   3,227,000 
Payments on revolving credit facility   (30,000)  (3,227,000)
Net (payments) proceeds of commercial paper   (706,850)  1,025,075 
Proceeds from the issuance of long-term debt   498,910    
Principal payments on long-term debt     (300,000)
Payment of debt issuance costs   (3,900)  (39)
Repurchases of common stock   (1,604,509)  (2,590,980)
Net proceeds from issuance of common stock   112,825   71,604 
Other   (569)  (354)
Net cash used in financing activities   (1,704,093)  (1,794,694)
       
Effect of exchange rate changes on cash   (907)  893 
Net decrease in cash and cash equivalents   (163,519)  (25,919)
Cash and cash equivalents at beginning of the period   279,132   108,583 
Cash and cash equivalents at end of the period $ 115,613  $82,664 
       
Supplemental disclosures of cash flow information:      
Income taxes paid $ 419,331  $147,128 
Interest paid, net of capitalized interest   139,228   127,085 


 
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
          
  For the Twelve Months Ended
  September 30, 
Adjusted Debt to EBITDAR: 2024 2023
(In thousands, except adjusted debt to EBITDAR ratio)        
GAAP debt $ 5,359,810  $5,102,350 
Add:Letters of credit   127,234   111,732 
 Unamortized discount and debt issuance costs   30,190   27,650 
 Six-times rent expense   2,664,996   2,507,928 
Adjusted debt $ 8,182,230  $7,749,660 
         
GAAP net income $ 2,388,054  $2,322,649 
Add:Interest expense   223,293   187,851 
 Provision for income taxes   643,344   656,817 
 Depreciation and amortization   451,802   396,468 
 Share-based compensation expense   27,163   29,493 
 Rent expense (i)   444,166   417,988 
EBITDAR $ 4,177,822  $4,011,266 
         
Adjusted debt to EBITDAR   1.96   1.93 
         

(i)   The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended September 30, 2024 and 2023 (in thousands):

  For the Twelve Months Ended
  September 30,
  2024 2023
Total lease cost, per ASC 842 $530,689  $495,360 
Less:Variable non-contract operating lease components, related to property taxes and insurance  86,523   77,372 
Rent expense $444,166  $417,988 


  September 30, 
  2024 2023
Selected Balance Sheet Ratios:        
Inventory turnover (1)   1.7  1.7
Average inventory per store (in thousands) (2) $ 781 $758
Accounts payable to inventory (3)   129.4%  133.9%


   For the Three Months Ended  For the Nine Months Ended
   September 30,  September 30, 
   2024 2023 2024 2023
Reconciliation of Free Cash Flow (in thousands):                
Net cash provided by operating activities $ 772,015  $866,286  $ 2,425,089  $2,517,655 
Less:Capital expenditures   258,309   293,016    732,916   753,958 
 Excess tax benefit from share-based compensation payments   13,666   8,862    35,044   27,852 
 Investment in tax credit equity investments     1      4,150 
Free cash flow $ 500,040  $564,407  $ 1,657,129  $1,731,695 


  For the Three Months Ended  For the Nine Months Ended
  September 30,  September 30, 
     2024 2023    2024 2023
Revenue Disaggregation (in thousands):               
Sales to do-it-yourself customers$ 2,215,640  $2,206,511  $ 6,366,670  $6,254,980 
Sales to professional service provider customers   2,032,376   1,914,884    5,901,820   5,480,212 
Other sales, sales adjustments, and sales from the acquired Vast Auto stores   116,421   81,985    344,388   245,043 
Total sales $ 4,364,437  $4,203,380  $ 12,612,878  $11,980,235 


  For the Three Months Ended  For the Nine Months Ended  For the Twelve Months Ended
  September 30,  September 30,  September 30, 
     2024  2023     2024  2023     2024  2023 
Store Count:               
Beginning domestic store count  6,152  6,027   6,095  5,929   6,063  5,910 
New stores opened  35  36   92  136   125  156 
Stores closed       (2)  (1) (3)
Ending domestic store count  6,187  6,063   6,187  6,063   6,187  6,063 
                
Beginning Mexico store count  69  44   62  42   48  28 
New stores opened  9  4   16  6   30  20 
Ending Mexico store count  78  48   78  48   78  48 
                
Beginning Canada store count  23           
Stores acquired      23     23   
New stores opened  3     3     3   
Ending Canada store count  26     26     26   
                
Total ending store count  6,291  6,111   6,291  6,111   6,291  6,111 


  For the Three Months Ended  For the Twelve Months Ended
  September 30,  September 30, 
     2024 2023 2024 2023
Store and Team Member Information:                
Total employment   92,709   90,910         
Square footage (in thousands) (4)   47,949   46,258         
Sales per weighted-average square foot (4)(5) $ 89.17  $89.99  $ 340.84  $339.76 
Sales per weighted-average store (in thousands) (4)(6) $ 689  $683  $ 2,620  $2,564 
                 

(1)   Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.
(2)   Calculated as inventory divided by store count at the end of the reported period.
(3)   Calculated as accounts payable divided by inventory.
(4)   Represents O’Reilly’s U.S. and Puerto Rico operations only.
(5)   Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.
(6)   Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.


FAQ

What was O'Reilly Automotive's (ORLY) comparable store sales growth in Q3 2024?

O'Reilly Automotive reported a comparable store sales growth of 1.5% in Q3 2024.

How much did O'Reilly (ORLY) spend on share repurchases in Q3 2024?

O'Reilly spent $541 million to repurchase 0.5 million shares at an average price of $1,084.28 per share in Q3 2024.

What is O'Reilly's (ORLY) updated comparable store sales guidance for 2024?

O'Reilly tightened its full-year 2024 comparable store sales guidance from 2.0-4.0% to 2.0-3.0%.

What was O'Reilly's (ORLY) diluted earnings per share in Q3 2024?

O'Reilly's diluted earnings per share was $11.41 in Q3 2024, up 6% from $10.72 in Q3 2023.

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