O'Reilly Auto Parts 2011 Annual Report Download - page 7

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During 2011, O’Reilly continued to
execute our proven Dual Market
Strategy; focusing on both the
do-it-yourself retail and do-it-for-me
professional service provider
customer. The success of this
established strategy is built upon the
O’Reilly Culture Values of excellent
customer service, respect, teamwork,
honesty, hard work, dedication and
professionalism and has enabled us
to once again grow market share in
our existing markets, continue to
expand our geographic footprint
into new markets, and integrate
strategic acquisitions.
Growing Market Share
During 2011, we again achieved
strong, profitable market share
growth. Our unsurpassed levels of
customer service and industry
leading parts availability, supported
by a robust distribution infrastructure,
drove a solid comparable store sales
increase of 4.6%, which was on top of
very strong 8.8% comparable store
sales growth in 2010. Our efforts to
continuously improve gross profit and
our relentless focus on expense
control generated a record breaking
14.9% adjusted operating margin,
which represents a 130 basis point
improvement over 2010’s record
adjusted operating margin of 13.6%.
We are very pleased with our ability to
continue to gain market share while
setting new profitability highs, and
we are confident that we will achieve
our targeted 15% operating margin in
2012, a year ahead of the goal that
To Our Fellow Shareholders
We are excited to present another year of record breaking financial
performance to our shareholders. Our continued success is the direct
result of more than 49,000 dedicated members of Team O’Reilly who
tirelessly work every day to provide the highest level of customer
service in the industry. The hard work and dedication of our Team
Members has driven our past achievements and will be the catalyst for
our future successes. We would like to take this opportunity to thank
each member of Team O’Reilly for their contributions.
we established when we purchased
CSK Automotive, Inc in 2008. We
believe that our profitable growth is
driven by our core Culture Values and
the consistent execution of our Dual
Market Strategy and we will continue
to run the business based on these
fundamentals in 2012 and beyond.
O’Reilly Automotive 2011 Annual Report
5
Exceeding Customers Expectations
Our Team Member’s dedication to providing an unsurpassed level of
service to our customers remains the backbone to our success. In our
stores, distribution centers and corporate offices, we work extremely
hard and take great pride in our ability to exceed our customers’
expectations by providing solutions to our customers’ automotive parts
needs. We remain dedicated to ensuring our Company is staffed with the
friendliest and most knowledgeable parts professionals in the industry
whose primary goal is to exceed the expectations of each customer who
visits or calls our stores. This focus on exceptional customer service is
the foundation of our past successes and will be the primary driver for
our success in the future.