A $9.3 billion noncash impairment charge was recorded due to a sustained decline in stock price, reducing the carrying value of intangible assets.
Emerging markets grew top line by around 8% through both price and volume, with the highest operating income margin ever.
Inflation is expected to be about 5% to 7% for the year, with pricing increases around 1%, indicating pricing below inflation.
North America retail showed improvement excluding cold cuts and bacon, with a 2.7% decline in the latest 4-week period versus a 4% year-to-date decline.
Tariffs are expected to impact margins by approximately 100 basis points this year, with a potential full-year annualized impact of 180 basis points if tariffs remain.
The second quarter results came in line with expectations, showing an improvement in year-over-year top line performance.
105 net new stores opened in the first half of 2025 across 34 U.S. states, Puerto Rico, and Mexico.
Adjusted debt-to-EBITDAR ratio increased slightly to 2.06x from 1.99x at end of 2024 but remains below the 2.5x leverage target.
Earnings per share increased 11% to $0.78 in Q2, driven by strong sales growth and effective pricing management.
Free cash flow for the first half of 2025 was $904 million, down from $1.2 billion in the prior year, mainly due to timing of renewable energy tax credit payments.
Gross margin for Q2 was 51.4%, up 67 basis points from Q2 2024, exceeding expectations due to supply chain management and tariff timing benefits.
O'Reilly Automotive reported a 4.1% increase in comparable store sales for Q2 2025, with professional business comp sales exceeding 7%.
SG&A per store grew 4.5% in Q2, above expectations due to inflationary pressures and investments in customer service.
Dafinchi
