The company opened 38 net new stores during the three months ended March 31, 2025, and anticipates total new store growth to be 200 to 210 net, new store openings in 2025. This demonstrates a continued commitment to expanding their physical presence.

O'Reilly began operating 23 stores in Canada from the Groupe Del Vasto (Vast Auto) acquisition during the three months ended March 31, 2024, indicating progress in expanding their international presence and integrating acquired businesses.

The company remains focused on its dual market strategy, targeting both DIY customers and professional service providers. They are also implementing initiatives focused on marketing and training to educate customers on the advantages of ongoing vehicle maintenance, as well as 'purchasing up' on the value spectrum.

Selling, general and administrative expenses increased 8% YoY, primarily due to enhancements to store level pay plans, inflationary pressures in medical plan costs, maintenance and refreshment of stores, and information technology investments. This indicates potential challenges in managing operational costs.

Comparable store sales growth was driven by increases in average ticket values and transaction costs for both professional service provider and DIY customers. This suggests effective pricing strategies and the ability to pass on cost increases to customers.

The Chief Executive Officer and the Chief Financial Officer concluded that the Company's disclosure controls and procedures as of the end of the period covered by this report are functioning effectively. This indicates a strong internal control environment.

As of March 31, 2025, there have been no material changes to the risk factors set forth in our annual report on Form 10-K for the year ended December 31, 2024. This suggests a relatively stable risk environment, though the existing risks remain relevant.

The company acknowledges the influence of macroeconomic factors such as inflation, tariffs, fuel and energy costs, and unemployment trends on consumer spending. Future changes may negatively impact consumers' disposable income.

The Company remained in compliance with all covenants under the Credit Agreement as of March 31, 2025, indicating a low risk of financial distress related to debt obligations.

The company emphasizes its dual market strategy (DIY and professional service providers) as a key element in gaining market share in existing markets and expanding into new ones. This strategy allows them to cater to a broader customer base.

The company highlights superior customer service, well-trained Team Members, and a strategic distribution network as competitive advantages. These factors contribute to same-day and overnight inventory access and a broad product selection.

The company is actively working to educate customers on vehicle maintenance and encourage them to purchase higher-quality products. This strategy aims to increase sales and profitability by shifting consumer preferences towards 'better' and 'best' alternatives.

While SG&A increased, the company likely implemented efficiencies in other operational areas to partially offset these costs. This is implied by the overall net income decrease being smaller than the SG&A increase alone would suggest.

The increase in gross profit as a percentage of sales was primarily due to improved acquisition costs. This suggests that the company is effectively managing its supply chain and negotiating favorable terms with suppliers.

The company's strategic distribution and hub store network provides same-day and over-night inventory access, which is essential for efficient inventory management and customer service.

The increase in SG&A as a percentage of sales was principally due to, among other factors, information technology investments. This implies a commitment to improving technological capabilities.

The company is implementing Omnichannel initiatives, which likely include investments in technology to enhance the customer experience across different channels, contributing to sales growth.

The company emphasizes superior customer service provided by well-trained and technically proficient Team Members. This suggests investment in training and technology to support their expertise.

The company continues to repurchase shares under its share repurchase program, indicating confidence in its future performance and a commitment to returning value to shareholders. As of March 31, 2025, $1.9 billion remained under the authorization.

Capital expenditures increased, primarily due to distribution enhancement and expansion projects and an increase in investments in new store capital growth. This indicates a focus on expanding infrastructure and store footprint.

The company maintains access to its unsecured revolving credit facility, providing financial flexibility. Debt levels remain relatively stable, suggesting a balanced approach to capital allocation.

The Company has a conditional agreement to purchase transferrable federal renewable energy tax credits (RETC). This indicates a commitment to supporting renewable energy and potentially reducing the company's carbon footprint.

The company offers used oil, oil filter, and battery recycling programs at its stores. This demonstrates a commitment to environmental responsibility and waste reduction.

The company has letters of credit primarily to support obligations related to workers' compensation and insurance. This suggests a focus on employee well-being and risk management.

The company identifies the total number of vehicles on the road and the average age of the vehicle population as key drivers of demand. These factors are influenced by new vehicle sales, scrappage rates, and consumer willingness to maintain older vehicles.

The number of total miles driven in the U.S. influences the demand for repair and maintenance products. The company notes a slight increase in miles driven year-to-date.

The company acknowledges that its business is seasonal, primarily as a result of the impact of weather conditions on customer buying patterns. This highlights the importance of managing inventory and resources to meet seasonal demand fluctuations.