O’Reilly says could be seeing some deferral in larger ticket DIY jobs

On the company’s Q3 earnings call, executives at O’Reilly Automotive (ORLY) stated: “We saw a significant ramp in tariff driven acquisition cost increases and made appropriate adjustments to selling prices on a category basis. The pressure to our DIY business as we move through the quarter was primarily felt in some categories where we could be seeing some deferral in larger ticket jobs. However, we continue to see strength broadly in other DIY maintenance categories, including oil filters and fluids that have continued the outperformance we have seen throughout the year. We want to emphasize that we are still in the early stages of the consumer response to the ramp up in price levels. It can be difficult to parse… As we’ve noted, the last several quarters, we remain cautious in our outlook on the consumer and expect that we could continue to see a conservative stance from consumers and how they manage spending in this environment. However, even in this environment, our DIY consumers are still showing a willingness to invest in and maintain their vehicles. And we believe any potential deferral pressure will be short term.”