Transportation
O’Reilly Automotive Sinks on First Brands Risk, DIY Pullback
Customers enter an O'Reilly Automotive Inc. auto parts store in Louisville, Kentucky.
Photographer: Luke Sharrett/Bloomberg
O’Reilly Automotive Inc. shares fell more 7% after company executives detailed its exposure to a bankrupt supplier and said inflation is taking a toll on sales to do-it-yourself customers.
While the replacement auto parts retailer said it doesn’t view the failure of First Brands Group as a significant blow to its supply chain, O’Reilly President Brent Kirby told analysts on an earnings call Thursday that insolvent supplier accounts for about 3% of its costs of goods sold. He added that O’Reilly has alternative suppliers for those products.