Mission Statement, Vision, & Core Values (2024) of O'Reilly Automotive, Inc. (ORLY).

An Overview of O'Reilly Automotive, Inc. (ORLY)

General Summary of O'Reilly Automotive, Inc.

O'Reilly Automotive, Inc., founded in 1957 by the O'Reilly family, is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. As of June 30, 2024, the company operated 6,244 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada. O'Reilly serves both do-it-yourself customers and professional service providers, offering a wide range of products that include:

• Automotive parts and accessories
• Tools and equipment
• Maintenance and repair products

In 2024, O'Reilly reported total sales of $8.25 billion for the first six months, reflecting an increase of 6% compared to $7.78 billion for the same period in 2023.

Company's Financial Performance in the Latest Financial Reports

For the second quarter ended June 30, 2024, O'Reilly reported:

• Total sales of $4.27 billion, a 5% increase from $4.07 billion in the same quarter of the previous year.
• Gross profit of $2.17 billion, representing 50.7% of sales.
• Selling, general and administrative expenses (SG&A) of $1.30 billion, or 30.5% of sales.
• Operating income of $863 million, which is 20.2% of sales.
• Net income of $623 million, or 14.6% of sales.
• Year-to-date diluted earnings per share increased by 7% to $19.75.

Overall, the company achieved a net cash flow from operating activities of $1.7 billion year-to-date. O'Reilly's comparable store sales grew by 2.3% in Q2 2024, following a 9.0% increase in Q2 2023. The company anticipates total revenue for the full year 2024 to be between $16.6 billion and $16.9 billion.

Introduction to O'Reilly as a Leader in the Industry

O'Reilly Automotive, Inc. is recognized as a leader in the automotive aftermarket industry due to its extensive network of stores and commitment to customer service. The company continues to expand its market presence, having opened 64 new stores in the first half of 2024, with plans for 190 to 200 net new store openings by year-end. The company’s strategic focus on inventory availability and exceptional service has enabled it to maintain a competitive edge in a challenging market environment.

O'Reilly’s strong financial performance and growth initiatives position it favorably within the automotive aftermarket sector, showcasing its ability to adapt and thrive amid changing consumer demands and market conditions.

Mission Statement of O'Reilly Automotive, Inc. (ORLY)

Mission Statement Overview

O'Reilly Automotive, Inc. (ORLY) operates with a mission statement that reflects its commitment to delivering exceptional customer service and high-quality automotive aftermarket products. The mission statement serves as a guiding principle for the company's strategic decisions and operational practices, emphasizing the importance of customer satisfaction and employee engagement in achieving long-term success.

Core Component 1: Exceptional Customer Service

O'Reilly Automotive prioritizes exceptional customer service as a fundamental aspect of its mission. This commitment is evident in its workforce of over 91,874 employees, referred to as "Professional Parts People," who are trained to assist customers with their automotive needs effectively. The company strives to create a welcoming environment, ensuring that customers receive personalized assistance and expert advice.

Core Component 2: High-Quality Products

O'Reilly Automotive emphasizes the provision of high-quality automotive parts and accessories. The company offers a wide range of products, including tools, supplies, and equipment, catering to both do-it-yourself (DIY) customers and professional service providers. As of June 30, 2024, O'Reilly operated 6,244 stores across the United States, Mexico, and Canada, enabling it to maintain a robust inventory to meet customer demands efficiently.

Core Component 3: Employee Engagement and Development

Employee engagement is a critical element of O'Reilly's mission statement. The company invests significantly in training and development programs to enhance employee skills and foster a culture of teamwork and collaboration. This focus on employee development is reflected in the company's continuous growth, with an increase in store count from 6,071 in 2023 to 6,244 in 2024, demonstrating its commitment to expanding its workforce and enhancing operational capabilities.

These components collectively reinforce O'Reilly Automotive's mission statement, driving the company's strategic initiatives and operational objectives as it seeks to enhance its market position in the automotive aftermarket industry.

Vision Statement of O'Reilly Automotive, Inc. (ORLY)

Vision Statement Overview

O'Reilly Automotive, Inc. (ORLY) aims to be the leading retailer in the automotive aftermarket industry by providing superior service and quality products to both do-it-yourself customers and professional service providers. This vision is reflected in their commitment to growth, customer satisfaction, and community engagement.

Customer Commitment

O'Reilly's vision emphasizes a strong commitment to customer satisfaction. In 2024, the company reported a net income of $1.17 billion, reflecting a 2% increase compared to $1.14 billion in 2023. The increase in sales during the first half of 2024 was attributed to a focus on exceptional customer service, with sales reaching $8.25 billion, up from $7.78 billion year-over-year.

Market Expansion

O'Reilly's vision includes strategic market expansion. As of June 30, 2024, the company operated 6,244 stores across 48 states, Puerto Rico, Mexico, and Canada. The company plans to open 190 to 200 new stores by the end of 2024, reflecting its aggressive growth strategy.

Community Engagement

O'Reilly's vision also emphasizes community engagement and corporate responsibility. The company has been actively involved in various community initiatives and supports local organizations. For instance, it has committed to sustainability practices within its operations, aiming to reduce its environmental footprint while providing quality automotive parts and services.

Financial Resilience

The financial resilience of O'Reilly Automotive is a key component of its vision. The company reported an adjusted debt to EBITDAR ratio of 1.97 in 2024, indicating strong operational performance and financial stability. This resilience allows O'Reilly to invest in its growth and service strategies effectively.

Core Values of O'Reilly Automotive, Inc. (ORLY)

Core Values of O'Reilly Automotive, Inc. (ORLY)

Customer Service

O'Reilly Automotive places a strong emphasis on exceptional customer service, which is vital to its business model. The company’s commitment to customer satisfaction is evident through multiple initiatives aimed at enhancing the customer experience.

For example, O'Reilly's team of Professional Parts People is trained to provide knowledgeable assistance in-store and through online channels. In 2024, the company reported a second-quarter comparable store sales increase of 2.3%, showcasing its ability to retain customer loyalty even in a challenging market.

Integrity

Integrity is a foundational core value for O'Reilly Automotive. The company strives to maintain transparency and ethical standards in all its operations.

O'Reilly’s commitment to integrity is reflected in its corporate governance practices and adherence to regulations. In 2024, the company has been proactive in providing accurate financial disclosures, with net income for the first six months at $1.17 billion, reflecting a 2% increase year-over-year.

Teamwork

The value of teamwork is integral to O'Reilly's success, fostering collaboration among its employees to achieve common goals.

In 2024, O'Reilly opened 64 new stores, bringing its total store count to 6,244 across the U.S., Mexico, and Canada. This expansion is a testament to the effective collaboration of its teams. The company’s workforce has grown to 91,874 employees, emphasizing the importance of teamwork in driving business success.

Respect

Respect for both customers and employees is a core value at O'Reilly Automotive. The company promotes a culture of respect that enhances employee morale and customer interactions.

O'Reilly has implemented various employee programs that focus on professional development and respect in the workplace. This commitment is reflected in the company’s retention rates and the overall positive work environment, which is crucial for maintaining high levels of service.

Excellence

O'Reilly Automotive is dedicated to excellence in all aspects of its business, from product offerings to customer service.

The company's performance metrics indicate a commitment to this value, with gross profit for the first half of 2024 reaching $4.20 billion, equating to 50.9% of sales. Furthermore, the company has set a target of achieving total revenue between $16.6 billion to $16.9 billion for the full year.