Question · Q3 2025
Brent Jordan asked if O'Reilly's 4% same-skew inflation expectation differs from peers due to supply chain or tariff exposure, and for a breakdown of the 10% inventory per store growth, distinguishing between price impact, buying ahead, and strategic unit additions for better fill rates.
Answer
President Brent Kirby explained that O'Reilly's supplier diversification, with mid-20s exposure to China and multi-sourcing from various countries, positions them well to respond to tariff changes. CEO Brad Beckham stated that O'Reilly focuses on its own operations, scale, negotiating power, and competitive pricing. CFO Jeremy Fletcher clarified that the 10% inventory growth is primarily due to executing inventory strategies and deploying incremental enhancements, with price having less impact due to LIFO reporting. Brad Beckham added that Q3 inventory growth also included stocking the new Stafford, Virginia DC.