Q4 2024 O'Reilly Automotive Inc Earnings Call Transcript
Key Points
- O'Reilly Automotive Inc (ORLY) reported a 4.4% increase in comparable store sales for the fourth quarter, which was at the high end of their expectations.
- The company achieved a 2.9% increase in comparable store sales for the full year 2024, marking the 32nd consecutive year of growth in this metric.
- O'Reilly Automotive Inc (ORLY) plans to open 200 to 210 net new stores in 2025, reflecting confidence in their ability to balance organic growth with greenfield expansion.
- The company is investing in distribution capabilities, with new distribution centers in Stafford, Virginia, and expansions in Lakeland, Florida, to enhance inventory availability.
- O'Reilly Automotive Inc (ORLY) maintained a strong gross margin of 51.3% in the fourth quarter, consistent with the previous year, and expects further expansion in 2025.
- The company faced a $35 million charge in the fourth quarter to adjust auto claims self-insurance liabilities, impacting EPS growth by over 1% for the full year.
- O'Reilly Automotive Inc (ORLY) reported continued softness in discretionary categories such as tools, accessories, and performance parts due to consumer pressure.
- The company's guidance for 2025 comparable store sales growth is set at a lower range of 2% to 4%, reflecting cautiousness about potential economic challenges.
- Free cash flow for 2025 is expected to decrease to a range of $1.6 billion to $1.9 billion, driven by increased capital expenditures and inventory investments.
- The company anticipates a slight decline in DIY traffic in 2025 due to increased parts quality and extended service intervals, despite expecting higher ticket values.
Welcome to the O'Reilly Automotive Inc fourth-quarter and full year 2024 earnings call.
My name is Matthew and I'll be your operator for today's call. (Operator Instructions)
I'll now turn the call over to Jeremy Fletcher. Mr. Fletcher, you may begin.
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Thank you, Matt. Good morning, everyone, and thank you for joining us.
During today's conference call, we will discuss our fourth quarter and full year 2024 results and our outlook for 2025. After our prepared comments, we will host a question-and-answer period.
Before we begin this morning, I would like to remind everyone that our comments today contain forward-looking statements, and we intend to be covered by, and we claim the protection under the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as estimate
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