Total Revenue

+4% (from $3.976B to $4.137B)

Total Revenue increased in Q1 2025 due to stronger sales performance from both DIY ($2,051.9M) and Professional ($1,998.6M) segments, reflecting continued momentum from prior periods where factors like comparable store sales growth and store expansions drove revenue gains. This growth builds on previous improvements seen in FY 2024, although it now occurs in a more mature operating environment. " "

Operating Income

-1.5% (declined from $752.5M to $741.5M)

Operating Income declined slightly despite increased revenue, primarily because of rising SG&A expenses (an 8% increase to $1.38B in Q1 2025 versus $1.28B in Q1 2024) and other cost pressures. This mirrors trends from previous periods where increased investments in supporting infrastructure and cost control challenges eroded margin improvements. "

Net Income

-1.6% (declined from $547.2M to $538.5M)

Net Income decreased modestly as higher operating costs, including increased SG&A and total other expenses (e.g., interest expenses rising from $52.1M to $57.1M), partially offset the revenue gains. This outcome continues the pattern seen in prior periods, where gains in revenue were tempered by cost inflation and expense growth, limiting gains in net profitability. "

Comparable Store Sales Growth

FY 2025

2% to 4% "

2% to 4% " "

no change

EPS

FY 2025

$42.60 to $43.10 "

$42.90 to $43.40 "

raised

Total Revenues

FY 2025

$17.4 billion to $17.7 billion "

$17.4 billion to $17.7 billion "

no change

Gross Margin

FY 2025

51.2% to 51.7% "

51.2% to 51.7% "

no change

Operating Profit Margin

FY 2025

19.2% to 19.7% "

19.2% to 19.7% "

no change

SG&A Per Store Growth

FY 2025

2% to 2.5% or 2.5% to 3%* "

2% to 2.5% full-year with 2.5% to 3% in Q2/Q3 " "

no change

Free Cash Flow

FY 2025

$1.6 billion to $1.9 billion "

$1.6 billion to $1.9 billion "

no change

Capital Expenditures

FY 2025

$1.2 billion to $1.3 billion "

$1.2 billion to $1.3 billion "

no change

AP-to-Inventory Ratio

FY 2025

Approximately 125% "

Approximately 125% "

no change

Inventory Per Store Growth

FY 2025

no prior guidance

5% "

no prior guidance

Supply Chain Diversification

Previously discussed in Q4 2024 and Q3 2024 with a focus on reducing dependency on China through global sourcing (shifting from China to alternatives, with detailed supplier diversification measures " " " " ).

Emphasis remains on actively reducing reliance on China, with strategic long‐term sourcing decisions and continued evaluation of tariff impacts while expanding sourcing to India, Vietnam, and Thailand. " "

Consistent focus on diversification with further refinement in geographic spread and a balanced approach to tariff management.

Pricing Discipline and Cost Management vs Consumer Pricing Sensitivity

In Q2–Q4 2024, executives highlighted strong pricing discipline and effective cost management techniques, including passing through tariff costs, while noting consumer caution and modest pricing sensitivity in both DIY and DIFM segments. " " "

Q1 2025 maintained confidence in its pricing discipline, leveraging its non‐discretionary product nature and negotiating supplier pricing, even as consumer pricing sensitivity remains a point of caution. " "

Steady sentiment around disciplined pricing with a persistent, cautious tone regarding consumer behavior.

Market Share and Segment Dynamics

Across Q2–Q4 2024, there was a clear focus on gaining market share—especially in the professional (DIFM) segment—with inventory discipline highlighted and challenges noted in the DIY segment. " " "

Q1 2025 continued this trend with reported market share gains, robust DIFM performance (mid-single-digit growth) contrasted with low single-digit DIY growth, and record in-stock performance through disciplined inventory management. " " "

Consistent strategy; the focus on DIFM growth and inventory discipline is maintained, while DIY challenges persist.

Consumer Demand Uncertainty and Discretionary Spending Trends

In Q2–Q4 2024, consumer uncertainty was noted amid broader economic pressures, with softness in discretionary categories (tools, accessories) and stable performance in maintenance-driven products. " " "

Q1 2025 echoed these sentiments by citing continued economic uncertainty and consumer caution, with maintenance categories performing well and discretionary segments under pressure. "

Stable trend; persistent caution in discretionary spending combined with defensive demand for essential vehicle maintenance remains evident.

Store Expansion, Distribution Infrastructure Investments, and Capital Expenditure Strategy

In Q2–Q4 2024, aggressive store expansion was a priority with targets for new store openings, significant distribution center investments, and emerging emphasis on owned versus leased store models (with owned stores costing more but expected to drive stronger sales). " " " "

Q1 2025 reported active expansion with 38 net new stores, robust capital expenditures, and continued investments in distribution infrastructure, though details on owned versus leased strategy were not reiterated. " " "

Evolution in execution; expansion and distribution strategies remain aggressively pursued with more detailed execution metrics, while the focus on owned store economics has been highlighted in earlier periods.

Operating Expense and SG&A Cost Pressures

Q2–Q4 2024 discussions centered on controlled SG&A growth with pressures from self-insurance costs, deferred compensation, and adjustments (including notable charges in Q4), with revised guidance to manage expenses amid inflation. " " "

In Q1 2025, SG&A per store growth was higher than expected (4.1%), driven by payroll, benefits, and maintenance costs, though these pressures were described as temporary with an outlook for normalization later in the year. " "

Ongoing cost pressures remain a theme with temporary anomalies in Q1 2025; management expects these to moderate in subsequent quarters.

Growth of Proprietary Brands and Shifts in Product Mix

In Q2–Q4 2024, the growth of proprietary brands was emphasized as key to diversifying sourcing and managing margins, with observations of shifts toward higher-quality, more complex products and some softness in discretionary areas. " " "

Q1 2025 reinforced the role of proprietary brands in long-term sourcing strategies and highlighted shifts in product mix—such as increased average ticket growth through more complex parts and stronger performance in maintenance categories—while discretionary pressures persist. " "

Steady emphasis on leveraging proprietary brands; the product mix continues to shift toward higher-value, complex products while maintaining focus on defensive categories.