After last year hitting a $10 billion revenue goal earlier than expected, O'Reilly Automotive Inc. (Nasdaq: ORLY) has a new target of $15 billion by 2027, according to a company official.
Tamara Conn, the auto parts retailer's deputy general counsel and vice president of legal services, discussed the new sales benchmark this morning during Springfield Business Journal's 12 People You Need to Know live interview series. The discussion with SBJ Editor Eric Olson was livestreamed on Facebook.
Conn said it was "really exciting" when the company in 2019 cleared $10 billion in annual sales for the first time in its more than 60-year history. The goal also was hit a year earlier than expected.
"Most of the revenue goals that we have had in the company, we've been fortunate that we've been able to meet them – often early," she said.
Conn's role in the revenue growth process has been felt, in part, with her legal guidance over mergers and acquisitions in recent years. She said the legal services department of 10 attorneys works to make sure local laws are being followed when setting up in new territories, for instance. Conn said O'Reilly Automotive's entrance into Mexico – through the purchase of Mayasa last year – was especially challenging, given the difference in labor laws between the two countries.
"We've done a number of acquisitions since I've been at O'Reilly," she said. "Over time, I've become more and more involved in those."
In earnings reports this year, O'Reilly Automotive officials have set a full-year revenue range of $10.7 billion-$11 billion. Through the third quarter ended Sept. 30, the company posted $8.8 billion in sales, up 14% from $7.7 billion during the same period of 2019, according to its latest earnings report.
Conn said a variety of factors this year may have led to increased business, such as stimulus checks, a shutdown of auto manufacturers and people having more time to spend on do-it-yourself vehicle projects amid the coronavirus pandemic.
"It's actually turned out to be a really, really good year for us," she said. "We don't really know what it will be going forward."
Mercy Springfield Communities is replacing its Mercy Clinic Family Medicine – South Creek building, located at 2711 S. Meadowbrook Ave., with a new building that is 1,500 square feet larger.