The company opened 198 net new stores in 2024 and plans to open 200 to 210 net new stores in 2025. This expansion strategy aims to increase penetration in existing markets and expand into new, contiguous markets.

The company completed the acquisition of Groupe Del Vasto (Vast Auto) in January 2024, adding 23 stores in Eastern Canada. This acquisition represents a strategic move to enter the Canadian automotive aftermarket.

The company is focused on offering customers an enhanced and seamless research and buying experience through its digital platforms, including www.OReillyAuto.com and the O'Reilly Pro mobile application. These strategies reflect the continued evolution of customer preferences in researching and completing purchases.

The company highlights its philosophy to 'promote from within' and boasts a management team with significant experience. As of December 31, 2024, the management team was comprised of 251 senior managers who average 19 years of service, 310 corporate managers who average 13 years of service, and 637 district managers who average 14 years of service.

The company emphasizes its commitment to providing extensive and ongoing training to its 'Professional Parts People' to ensure they are technically proficient and provide superior customer service. This includes sales call training and advanced training programs for sales and business development.

Management assessed the effectiveness of the company's internal control over financial reporting as of December 31, 2024, and concluded that it is effective based on criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

The company acknowledges that its sales are impacted by constraints on the economic health of its customers, which is affected by factors such as general business conditions, interest rates, inflation, consumer debt levels, and unemployment levels. Unfavorable economic conditions could challenge the consumer environment and adversely affect the business.

The company acknowledges that both the DIY and professional service provider portions of its business are highly competitive, particularly in densely populated areas. The company may have to expend more resources and risk additional capital to remain competitive and our results of operations, financial condition, and cash flows could be adversely affected.

The company relies on various systems to manage inventory, process transactions, and timely provide products to stores and customers. These systems are subject to failure, damage, or interruption, including power outages, telecommunications failures, computer viruses, cyber-attacks, security breaches, or other catastrophic events. If these systems are damaged or fail to function properly, the company may experience loss of critical data and interruptions or delays in our ability to manage inventories, deliver product, or process customer transactions.

The company believes its effective dual market strategy, serving both DIY and professional service provider customers, is a unique competitive advantage. This strategy enables the company to better compete by targeting a larger base of automotive aftermarket parts consumers, capitalizing on its existing store and distribution infrastructure, and operating profitably in both large markets and less densely populated geographic areas.

The company believes its commitment to a robust, regional, tiered distribution network provides superior replenishment and access to hard-to-find parts and enables it to optimize product availability and inventory levels throughout its store network. The company operates 31 DCs and 396 Hub stores to provide same-day or overnight access to a broad range of products.

The company's Omnichannel growth strategies reflect the continued evolution of customer preferences in researching and completing purchases. The company has long been known for excellent customer service and continues to grow the functionality and user-friendliness of its digital platforms, including www.OReillyAuto.com, www.OReillyPro.com, and our O'Reilly Pro mobile application, to enhance our customers' shopping experience.

Inventory turnover was reported at 1.7 for both 2024 and 2023, indicating consistent inventory management practices.

Accounts payable to inventory was 128.0% in 2024 compared to 130.8% in 2023, indicating the company's ability to manage its payables in relation to its inventory levels.

As part of the company's continuing efforts to enhance its distribution network in 2025, the company plans to continue to enhance its distribution network through the engineering, design, expansion, or relocation of new or current DCs. The company also plans to continue to utilize routing software to enhance logistics efficiencies and enhance labor management software to improve DC productivity and overall operating efficiency.

The company highlights its ongoing investments in developing enhanced information technology systems and tools, including utilizing routing software to enhance logistics efficiencies and enhancing labor management software to improve DC productivity and overall operating efficiency.

The company executes a comprehensive approach to cybersecurity risk management, helping ensure the data customers and other stakeholders entrust to it remains safe and secure. The company's cybersecurity program is guided by industry-wide recognized standards, including The National Institute of Standards and Technology (NIST) Cybersecurity Framework.

The company has a dedicated security operations team to monitor, analyze, and respond to security threats. The company also has security governance to manage and maintain security processes and intrusion, detection, and prevention systems.

The company repurchased $2.1 billion of its common stock in 2024. The board of directors approved a resolution to increase the authorization amount under the share repurchase program by an additional $2.0 billion.

Capital expenditures increased to $1.02 billion in 2024, primarily due to the acquisition of Vast Auto and an increase in capital expenditures. The increase in capital expenditures was primarily due to an increase in distribution enhancement and expansion projects, as well as an increase in the number of owned new store openings.

The costs associated with the expected openings of owned store locations in 2025, including the cost of land acquisition, building construction, fixtures, vehicles, net inventory investment, and computer equipment, are estimated to average approximately $3.0 million to $3.3 million per store.

The company has entered into a conditional agreement to purchase transferrable federal renewable energy tax credits (RETC). As of December 31, 2024, the Company had a total commitment of approximately $340 million to purchase RETCs, with the final closing payment anticipated to occur by April of 2026.

The company is committed to providing a work environment that allows Team Members to feel highly valued and to be productive and effective in their jobs by maintaining an inclusive environment and healthy work/life balance, which the company believes increases Team Member engagement.

The company's Board of Directors has adopted a code of ethics that applies to all of its directors, officers, and Team Members. The company also maintains an Insider Trading Policy that applies to all of its directors, officers, and Team Members, which it believes is reasonably designed to promote compliance with applicable insider trading laws, rules and regulations and listing standards.

The company's business is influenced by a number of general macroeconomic factors that impact both the industry and consumers, including, but not limited to, inflation, including rising consumer staples; fuel and energy costs; unemployment trends; interest rates; and other economic factors.

The company believes the key drivers of demand over the long-term for the products sold within the automotive aftermarket include the number of U.S. miles driven, number of U.S. registered vehicles, annual rate of light vehicle sales, and average vehicle age.

The company believes the increase in average vehicle age over the long term can be attributed to better engineered and manufactured vehicles, which can be reliably driven at higher mileages due to better quality power trains, interiors and exteriors, coupled with consumers' willingness to invest in maintaining these higher-mileage, better built vehicles. As the average age of vehicles on the road increases, a larger percentage of miles are being driven by vehicles that are outside of a manufacturer warranty.