April 22, 2015—O'Reilly Automotive Inc. on Wednesday said its profits rose in the first quarter due to higher sales and better margins, continuing a trend of 15 percent or greater profit growth for the past six years.
The Springfield, Mo., auto-parts retailer, which recently has been building its distribution network and expanding its store footprint, had projected improved results driven by lower gas prices and wear and tear of older vehicles, particularly those out of warranty, as customers have opted for spending more to repair cars rather than buy new ones. In 2015, the company plans to add a net 205 stores, compared with 200 stores in 2014. In the latest period, it opened 67 stores.
A breakdown:
- Revenue rose 10 percent to $1.9 billion, topping the consensus of $1.86 billion.
- Sales at established stores rose 7.2 percent from the year-ago period, topping the company's projection of 3–5 percent growth.
- Gross margin improved to 51.9 percent from 50.8 percent a year earlier.
- Through Wednesday's close, the company's stock was up 46 percent over the past 12 months.
