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    O'Reilly Automotive Inc (ORLY)

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    O'Reilly Automotive, Inc. is a specialty retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories, operating in the United States, Puerto Rico, Mexico, and Canada . The company serves both do-it-yourself (DIY) customers and professional service providers through a dual market strategy, with a significant portion of its revenue coming from the DIY channel . O'Reilly's product offerings include new and remanufactured automotive hard parts, maintenance items, accessories, auto body paint, automotive tools, and professional service provider equipment, categorized by quality and price into "good," "better," and "best" . The company also provides enhanced services such as battery diagnostics, recycling programs, and custom hydraulic hoses .

    1. Automotive Hard Parts - Offers new and remanufactured parts essential for vehicle repair and maintenance, catering to both DIY customers and professional service providers.
    2. Maintenance Items - Supplies products necessary for routine vehicle upkeep, including filters, fluids, and wipers, ensuring vehicle longevity and performance.
    3. Accessories - Provides a range of automotive accessories, enhancing vehicle aesthetics and functionality, tailored to customer preferences.
    4. Auto Body Paint - Supplies paint products for vehicle bodywork, supporting both cosmetic and repair needs with a variety of color options.
    5. Automotive Tools - Offers a comprehensive selection of tools required for vehicle repair and maintenance, serving both amateur and professional mechanics.
    6. Professional Service Provider Equipment - Supplies specialized equipment for professional automotive service providers, enhancing service efficiency and capability.
    7. Enhanced Services - Includes battery diagnostics, recycling programs, and custom hydraulic hoses, offering additional value and convenience to customers.
    NamePositionStart DateShort Bio
    Brad BeckhamChief Executive OfficerJanuary 2024Brad Beckham has been with O'Reilly for 28 years, starting as a Parts Specialist. He has held various roles, including Store Manager and Executive Vice President. He became CEO in January 2024 .
    Brent G. KirbyPresidentJanuary 2024Brent G. Kirby joined O'Reilly in 2018 as Senior Vice President of Omnichannel. He has served as Executive Vice President of Supply Chain and became President in January 2024 .
    Jeremy FletcherExecutive Vice President and Chief Financial OfficerMay 9, 2022Jeremy Fletcher has been with O'Reilly for 18 years, starting as Financial Reporting and Budgeting Manager. He became CFO on May 9, 2022 .
    Scott R. RossExecutive Vice President and Chief Information OfficerOctober 2023Scott R. Ross joined O'Reilly in October 2023. He has over 30 years of IT experience, previously serving as President of Saks Cloud Services at Hudson's Bay Company .
    Doug BraggExecutive Vice President of Operations and Sales2022Doug Bragg has been with O'Reilly for 33 years, starting as a Distribution Center Team Member. He became Executive Vice President of Store Operations in 2022 .
    Tamara F. ConnSenior Vice President of Legal and General CounselJuly 2023Tamara F. Conn has been with O'Reilly for 15 years, starting as Legal Counsel. She became Senior Vice President of Legal and General Counsel in July 2023 .
    Robert DumasSenior Vice President of Eastern Store Operations and Sales2016Robert Dumas has been with O'Reilly for 32 years, starting as a Parts Specialist. He became Senior Vice President of Eastern Store Operations and Sales in 2016 .
    Larry GraySenior Vice President of Inventory ManagementJune 2023Larry Gray has been with O'Reilly for 32 years, starting as a Distribution Center Team Member. He became Senior Vice President of Inventory Management in June 2023 .
    Philip M. HopperSenior Vice President of Real Estate and Expansion2022Philip M. Hopper has been with O'Reilly for 12 years, starting as Real Estate Counsel. He became Senior Vice President of Real Estate and Expansion in 2022 .
    Jeffery T. LoafmanSenior Vice President of Distribution OperationsApril 2023Jeffery T. Loafman joined O'Reilly in April 2023. He previously worked at Walmart, Inc. for over 20 years in various roles, including Vice President of International Distribution Operations .
    Chris ManciniSenior Vice President of Central Store Operations and Sales2022Chris Mancini has been with O'Reilly for 20 years, starting as an Installer Service Specialist. He became Senior Vice President of Central Store Operations and Sales in 2022 .
    Mark J. MerzSenior Vice President of Finance2022Mark J. Merz has been with O'Reilly for 16 years, starting as a Senior Accountant. He became Senior Vice President of Finance in 2022 .
    Shari ReavesSenior Vice President of Human Resources and TrainingFebruary 2024Shari Reaves has been with O'Reilly for 30 years, starting as an Employment Coordinator. She became Senior Vice President of Human Resources and Training in February 2024 .
    Chuck RogersSenior Vice President of Professional Sales and Store Operations Support2022Chuck Rogers has been with O'Reilly for 33 years, starting as a Delivery Specialist. He became Senior Vice President of Professional Sales and Store Operations Support in 2022 .
    Jason TarrantSenior Vice President of Western Store Operations and Sales2018Jason Tarrant has been with O'Reilly for 23 years, starting as a Parts Specialist in 2001. He became Senior Vice President of Western Store Operations and Sales in 2018 .
    David WilbanksSenior Vice President of Merchandise2016David Wilbanks has been with O'Reilly for 11 years, starting as Vice President of Merchandise. He became Senior Vice President of Merchandise in 2016 .
    1. Given that your higher-margin DIY business, which accounts for slightly over 50% of your sales , is experiencing softness and facing increased competition from mass retailers and warehouse clubs becoming more competitive , how do you plan to regain momentum and protect your market share in the DIY segment?

    2. With the prospect of tariffs ranging from 30% to 60% on goods from China and other countries , what specific strategies are you implementing to mitigate the potential impact on your cost of goods sold and overall margins?

    3. Your SG&A expenses grew 4.2% in the third quarter, reaching the high end of your expectations due to factors like self-insurance costs from events such as Hurricane Helene and deferred compensation ; how do you intend to control these expenses without compromising your commitment to excellent customer service?

    4. You've reduced your operating margin guidance to a range of 19.4% to 19.9%, driven by third-quarter sales performance and updated full-year comparable store sales expectations ; what concrete steps are you taking to improve sales and margins in the face of current macroeconomic pressures?

    5. The delays in new store openings due to construction and permitting issues have put you slightly behind your growth plan ; how are you addressing these obstacles to ensure timely expansion and maximize the returns on your capital investments?

    Program DetailsProgram 1Program 2
    Approval DateMay 23, 2023 November 16, 2023
    End Date/Duration3 years from approval 3 years from approval
    Total additional amount$2.0 billion $2.0 billion
    Remaining authorization amount$0 $967.7 million
    DetailsProgram to return excess capital to shareholders Program to return excess capital to shareholders
    YearAmount Due (in billions)Debt TypeInterest Rate (%)% of Total Debt
    20261.25 Senior Notes3.550 23.2% = (1.25 / 5.39) * 100
    20261.25 Senior Notes5.750 23.2% = (1.25 / 5.39) * 100
    20270.75 Senior Notes3.600 13.9% = (0.75 / 5.39) * 100
    20280.50 Senior Notes4.350 9.3% = (0.50 / 5.39) * 100
    20290.50 Senior Notes3.900 9.3% = (0.50 / 5.39) * 100
    20300.50 Senior Notes4.200 9.3% = (0.50 / 5.39) * 100
    20310.50 Senior Notes1.750 9.3% = (0.50 / 5.39) * 100
    20320.85 Senior Notes4.700 15.8% = (0.85 / 5.39) * 100
    20340.50 Senior Notes5.000 9.3% = (0.50 / 5.39) * 100
    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1992 PresentCurrent auditor