First Quarter Performance: O'Reilly Automotive reported a sales increase of $161 million for Q1 2025, driven by a comparable store sales growth of 3.6%. This growth aligns with expectations and showcases the resilience of the company's business model, particularly in the professional segment.
Sales Guidance: The company maintains its full-year comparable store sales guidance range of 2% to 4% for 2025. This reflects confidence in the underlying demand from consumers prioritizing vehicle maintenance over purchasing new vehicles, despite economic uncertainty.
Gross Margin and SG&A: Q1 gross margin was stable at 51.3%, reflecting a minimal impact from tariffs thus far. However, SG&A costs increased by 4.1% due to higher payroll, benefits, and occupancy expenses, which may pose a challenge to profit margins moving forward.