O`Reilly Automotive, Inc.

**Sales and Comparable Store Performance**: O'Reilly reported a 1.5% increase in comparable store sales for Q3 2024, following robust growth of 8.7% and 7.6% in the same quarter in the previous two years. However, this performance was below expectations and reflects challenges in the DIY segment, which saw a decline in ticket counts, despite positive average ticket values.

**Guidance and Market Outlook**: The company updated its full-year comparable store sales guidance to a range of 2% to 3%, based on Q3 performance and expectations for the remainder of the year. There is optimism that current industry headwinds are likely to be short-lived, and historical patterns support a rebound in demand in 2025.

**Gross Margin and SG&A Management**: O'Reilly achieved a gross margin of 51.6%, up 18 basis points year-over-year, driven by strong merchandise margins. However, SG&A per store grew by 4.2%, resulting in operating margin guidance being tightened to a range of 19.4% to 19.9%. The company emphasizes a deliberate approach to managing expenses to avoid negative impacts on customer service.