Q3 2025 RESULTS OCTOBER 30 | 2025 Forward Looking Statements and Non-GAAP Certain statements herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," "strategy," "target," "will," or similar language. ...

Financial Data and Key Metrics Changes - The company reported a 5.6% increase in comparable store sales for Q3 2025, with total sales increasing by $341 million [4][26] - Operating income increased by 9%, and diluted earnings per share rose by 12% [5] - The updated diluted earnings per share guidance is now in the range of $2.90 to $3.00, reflecting a year-over-year increase of 9% [13][14] - Free cash flow for the first nine months of 2025 was $1.2 billion, down from $1.7 billion in the same period in 2024 [28] Business Line Data and Key Metrics Changes - The professional business saw a comparable store sales increase of just over 10%, significantly contributing to overall sales growth [6][7] - DIY comparable store sales growth was in the low single digits, driven by average ticket benefits but partially offset by pressure on transaction counts [7][8] - Same-skew inflation during Q3 was just over 4%, impacting both professional and DIY segments [8] Market Data and Key Metrics Changes - The company updated its full-year comparable store sales guidance from 3%-4.5% to 4%-5% [10][11] - The effective tax rate for Q3 was 21.4%, slightly lower than the previous year's rate of 21.5% [26][28] Company Strategy and Development Direction - The company plans to open 225 to 235 net new stores in 2026, building on its growth in the U.S., Mexico, and Canada [23][50] - The focus remains on maintaining strong supplier relationships and managing risks associated with supplier health [19][60] - The company aims to provide exceptional service and industry-leading availability to continue gaining market share [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding consumer spending due to economic uncertainty but noted that DIY consumers are still willing to invest in vehicle maintenance [9][12] - The company remains optimistic about its ability to navigate the current tariff environment and maintain competitive pricing [11][17] - Management highlighted the importance of customer service and product availability in retaining and growing market share [12][18] Other Important Information - The company opened 55 net new stores in Q3, bringing the year-to-date total to 160 [22] - Capital expenditures for the first nine months of 2025 were $900 million, with a revised full-year guidance of $1.1-$1.2 billion [24][25] Q&A Session All Questions and Answers Question: Regarding the 4% same-skew inflation, will there be any residuals in the next quarters? - Management indicated that there may still be a tailwind from same-skew inflation moving into Q4 and Q1, but most adjustments needed have been made [34][35] Question: What has been observed historically regarding price elasticity, particularly on the DIY side? - Historically, larger ticket jobs can be deferred during economic shocks, but the company remains confident in the overall strength of both professional and DIY segments [36][37] Question: Is the elasticity function getting worse, and why wouldn't comps be higher than expected inflation? - Management noted that various factors, including weather and consumer behavior, contribute to the cautious outlook for comps, but they remain optimistic about overall trends [42][46] Question: Can you discuss the potential for U.S. store growth and international expansion? - Management expressed confidence in U.S. store growth potential and highlighted Mexico and Canada as significant opportunities for future expansion [47][50] Question: Are there notable differences in geographic performance due to weather patterns? - Management reported no material differences in regional performance during Q3, aligning with internal expectations [56] Question: What is the company's exposure to the First Brands situation? - The company indicated that First Brands represents a small portion of COGs, and they have multiple sourcing strategies in place to mitigate risks [58][60]

O’Reilly Automotive, Inc. (NASDAQ:ORLY) will release earnings results for the third quarter, after the closing bell on Wednesday, Oct. 22.Analysts expect the Pittsburgh, Pennsylvania-based company to report quarterly earnings at 83 cents per share, up from 76 cents per share in the year-ago period. The consensus estimate for O’Reilly Automotive's quarterly revenue is $4.69 billion, compared to $4.36 billion a year earlier, according to data from Benzinga Pro.On July 23, O’Reilly Automotive posted in-line ea ...

Core Insights - THOR Industries, Inc. reported earnings of $2.31 per share for Q4 fiscal 2025, exceeding the Zacks Consensus Estimate of $1.16 and up from $1.68 in Q4 fiscal 2024 [1] - The company achieved revenues of $2.52 billion in Q4, surpassing the Zacks Consensus Estimate of $2.31 billion, although this represented a 0.4% decline year over year [1] Segmental Results - North American Towable RVs generated revenues of $888.7 million, a decrease of 4.6% year over year, but exceeded the estimate of $825.6 million [2] - North American Motorized RVs reported revenues of $557.4 million, an increase of 7.8% year over year, surpassing the estimate of $504 million [4] - European RVs revenues were $923 million, down 2.2% year over year, yet above the estimate of $856.3 million [5] Financial Performance - Gross profit for the company totaled $118.6 million, reflecting a 1% year-over-year increase due to reduced warranty and promotional expenses [3] - Pretax income rose to $74.5 million from $50.9 million in the previous year, driven by improved gross profits [3] - As of July 31, 2025, THOR had cash and cash equivalents of $586.6 million and long-term debt of $919.6 million [6] Guidance for Fiscal 2026 - THOR projects consolidated net sales for fiscal 2026 to be between $9 billion and $9.5 billion, down from $9.6 billion in fiscal 2025 [7] - Expected EPS for fiscal 2026 is projected to be in the range of $3.75 to $4.25, compared to $4.84 in fiscal 2025 [7]

Group 1 - AutoZone is set to release its fourth-quarter earnings on September 23, with expected earnings of $50.95 per share, a decrease from $51.58 per share in the same period last year [1] - The company projects quarterly revenue of $6.25 billion, slightly up from $6.21 billion a year earlier [1] - In the third quarter, AutoZone reported earnings per share of $35.36, missing the analyst consensus estimate of $37.17, while quarterly sales reached $4.46 billion, reflecting a 5.4% year-over-year increase [2] Group 2 - AutoZone's same-store sales grew by 3.2%, driven by strength in the domestic segment [2] - Analysts have provided various ratings and price target adjustments for AutoZone, with Raymond James raising the price target to $4,900 and maintaining a Strong Buy rating [5] - Other analysts, including those from JP Morgan, Wells Fargo, Barclays, and UBS, have also raised their price targets, indicating a generally positive outlook for the stock [5]

Q2 2025 Results - Net sales were $20 billion, a decrease of 77% year-over-year[36] - Comparable store sales growth was +01% year-over-year[36] - Adjusted gross margin was 438%[36] - Adjusted SG&A margin was 407%, a decrease of 3 bps year-over-year[42] - Adjusted operating income margin was 30%, an increase of 19 bps year-over-year[42] - Adjusted diluted earnings per share were $069[39] - Net leverage ratio was 27x[41] Strategic Initiatives - Store availability reached the mid-90%s, an increase of 100 bps quarter-over-quarter[18, 21] - Distribution center consolidation is expected to result in 16 DCs by the end of 2025, compared to 28 at the end of 2024 and 38 at the end of 2023[26] - Market hub locations are expected to expand to 29 by the end of 2025, compared to 19 at the end of 2024, with an average 100 bps comp sales uplift[26] FY2025 Guidance - Net sales are projected to be between $84 billion and $86 billion[49] - Comparable store sales (52 weeks) are expected to grow by 050% - 150%[49] - Adjusted operating income margin is projected to be between 200% and 300%[49] - Adjusted diluted EPS is projected to be between $120 and $220[49]

Earnings Report - Advance Auto Parts is set to release its second-quarter earnings results on August 14, with analysts expecting earnings of 58 cents per share, a decrease from 75 cents per share in the same period last year [1] - The projected quarterly revenue is $1.97 billion, down from $2.68 billion a year earlier [1] Debt Offering - On July 28, Advance Auto Parts announced the pricing of upsized senior notes totaling $1.95 billion, maturing in 2030 and 2033 [2] Stock Performance - Following the announcement of the debt offering, Advance Auto Parts shares increased by 4.6%, closing at $61.81 [2] Analyst Ratings - Wells Fargo analyst Zachary Fadem maintained an Equal-Weight rating and raised the price target from $35 to $45 [4] - Evercore ISI Group analyst Greg Melich maintained an In-Line rating and increased the price target from $56 to $58 [4] - Citigroup analyst Steven Zaccone maintained a Neutral rating and raised the price target from $49 to $60 [4] - DA Davidson analyst Michael Baker maintained a Neutral rating and increased the price target from $47 to $65 [4] - Goldman Sachs analyst Kate McShane downgraded the stock from Neutral to Sell, reducing the price target from $48 to $46 [4]

Core Insights - CarParts.com, Inc. reported a net sales increase of 5% to $151.9 million for the second quarter of 2025 compared to $144.3 million in the same quarter last year, driven by higher consumer demand through its primary eCommerce sales channel [5][11] - The company is actively exploring strategic alternatives to maximize shareholder value, including a potential sale and strategic investments, with management expressing confidence that this process is nearing completion [3][9] - The company achieved positive Adjusted EBITDA in June 2025, indicating that strategic initiatives are beginning to yield tangible results, with expected annualized cost savings of approximately $10 million from investments in AI and automation [4][11] Financial Performance - Gross profit for the second quarter was $49.8 million, up from $48.4 million year-over-year, but gross margin decreased by 70 basis points to 32.8% due to product mix and tariffs [6][11] - Total operating expenses rose to $62.2 million from $57.1 million in the prior year, with operating expenses as a percentage of net sales increasing to 40.9% [7][11] - The net loss for the quarter was $12.7 million, compared to a net loss of $8.7 million in the same quarter last year, primarily due to lower gross margin and higher marketing expenses [8][11] Cash and Balance Sheet - As of June 28, 2025, the company had a cash balance of $19.8 million and a revolving loan balance of $10 million, compared to no revolver debt and a cash balance of $36.4 million at the end of the previous fiscal year [8][25] - Inventory stood at $94 million, reflecting an increase from $90.4 million at the end of the previous fiscal year [25] - Total assets decreased to $189.6 million from $210.6 million, while total liabilities increased slightly to $127.1 million [25][26] Market Position and Strategy - CarParts.com operates over 1 million quality automotive parts and accessories, positioning itself as a leading eCommerce provider in the automotive sector [13] - The company is focused on enhancing its fulfillment network and investing in technology to improve operational efficiency and customer experience [4][11] - The mobile app has achieved approximately 1 million cumulative downloads, indicating a growing digital presence [11]

Core Insights - Advance Auto Parts reported a fiscal first-quarter 2025 net sales of $2.6 billion, a 7% decrease year-over-year, while reaffirming full-year guidance for comp sales growth of 0.5% to 1.5% [1][9] Group 1: Store Optimization and Expansion - The company completed a store footprint optimization program, concentrating approximately 75% of its stores in markets where it ranks No. 1 or No. 2 in store density, supporting plans for over 100 new stores in the next three years [2][3] - This strategic shift is expected to enhance resource efficiency and support future same-store sales growth [3] Group 2: Supply Chain and Merchandising Improvements - The introduction of a new assortment framework led to a 200-basis point improvement in store availability, with plans to cover the 50 largest markets by the end of fiscal 2025, accelerating the timeline from fiscal 2026 [4][5] - Supply chain consolidation is set to reduce distribution centers from 38 to 12 by the end of 2026, which is expected to uplift comparable sales in serviced regions by 100 basis points [4] Group 3: Pro Channel Performance - The pro business segment experienced low single-digit percentage growth, outperforming the declining DIY channel, with 8 consecutive weeks of positive comp sales [6][7] - Improvements in delivery times and transaction metrics in the pro channel are aimed at capturing greater wallet share from large-scale installer accounts [6] Group 4: Financial Guidance and Outlook - Management reaffirmed fiscal-year guidance projecting net sales between $8.4 billion and $8.6 billion, with an adjusted operating income margin of 2% to 3% [9] - Comparable sales are expected to grow by 50 to 150 basis points, primarily driven by the pro channel, while DIY sales are anticipated to remain soft due to inflationary pressures [9]

Core Viewpoint - Analysts project that Advance Auto Parts (AAP) will report a quarterly loss of $0.82 per share, a decline of 222.4% year over year, with revenues expected to reach $2.5 billion, down 26.6% from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been revised 3.6% lower over the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Metrics Projections - Analysts predict the total number of retail stores for AAP will reach 4,452, down from 5,097 in the same quarter last year [5]. - The average estimate for the number of AAP stores is 4,174, compared to 4,483 a year ago [5]. - The consensus estimate for the number of stores opened is 4, a decrease from 7 in the same quarter last year [5]. - For CARQUEST, the estimated number of stores is 277, down from 294 a year ago [6]. Stock Performance - AAP shares have increased by 9.9% in the past month, while the Zacks S&P 500 composite has risen by 13.1% [7]. - AAP holds a Zacks Rank 1 (Strong Buy), indicating expectations of outperforming the overall market in the near term [7].