O'Reilly Automotive plunged by as much as 19% on Wednesday after the company announced second-quarter sales results that were weaker than it had expected.
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O'Reilly Automotive plunges after sales miss and warning of 'weak consumer demand' (ORLY, AAP, AZO)
"We faced a more challenging sales environment than we expected for the remainder of the quarter," after April, O'Reilly said.
Sales at its auto-parts stores open for at least one year rose 1.7% in the second quarter, O'Reilly said in a release on Wednesday. That was improved from Q1 but weaker than the company's guidance of 3%-5% growth.
"We faced a more challenging sales environment than we expected for the remainder of the quarter," after April, O'Reilly CEO Greg Henslee said, "due to what we believe were continued headwinds from a second consecutive mild winter and overall weak consumer demand."
"The comparable store sales shortfall will also have a consequent impact on our operating profitability," Henslee added.
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O'Reilly's warning dragged down other auto-parts stores; AutoZone fell 9%, while Advance Auto Parts was down 14%.
Car sales in the US slowed in the first half of this year following seven straight years of record-setting volumes. Although sales have softened, continued employment growth suggests that consumer purchases of the big-ticket items may remain healthy.
Auto sales in June
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