Toronto, Ontario -- Following the recent news that LKQ Corp. is selling its self-service business, this week's Tuesday Ticker takes a closer look at the recent performance of some of America's leading aftermarket businesses catering to the do-it-yourself crowd.
LKQ Sells Pick Your Part
This week, the Chicago-based LKQ Corp. announced it is selling its self-service segment, known as "Pick Your Part," to an affiliate of Pacific Avenue Capital Partners for US$410 million.
The sale is a key part of LKQ's multi-year strategy to simplify its business portfolio and focus on more profitable core segments. The net proceeds from the transaction, which is expected to close in the fourth quarter of 2025, will be used to reduce company debt.
The news the company would be abandoning the U-pick market was welcomed by investors. On August 26, 2025, the day the sale was announced, LKQ's stock rose fromUS$31.88 to US$32.17, a gain of 0.91 percent.
Genuine pain for Genuine Parts
During the second quarter, one of LKQ's largest competitors had a rough go selling to the do-it-yourself crowd.
Genuine Parts Company, an Atlanta, Georgia-based distributor of automotive and industrial parts, enjoyed a strong performance during Q2.It reported net sales of US$6.2 billion (CAD $8.5 billion) and an adjusted diluted earnings-per-share of US$2.10 (CAD $2.88), well above consensus estimates.
The company, which operates a vast network of distribution centers and stores, including NAPA Auto Parts, serves both professional mechanics and do-it-yourself customers.
While it enjoyed overall sales growth of 3.4 percent during Q2 2025, this was largely a result of acquisitions and favorable foreign currency impacts, rather than strong organic sales in the DIY space. Genuine's automotive segment, which includes both professional installers and the DIY market, only saw a sales increase of 0.4 percent.
As a result, the company was forced to lower its full-year guidance expectation due to ongoing market headwinds, including the Trump Administration's tariffs.
Advance Auto Parts holds steady
Advance Auto Parts, an auto parts provider headquartered in Raleigh, North Carolina, also saw a mixed performance during the quarter.
It reported net sales of US$2.01 billion (CAD $2.75 billion), which marked a 7.7 percent decline compared to the same period in the prior year.
While overall comparable store sales for the company increased by a modest 0.1 percent, this growth was primarily driven by the company's B2B business. The DIY segment experienced a low single-digit sales decline.
During the Q2 2025 earnings call, Advance Auto Parts' chief executive officer Shane O'Kelly said, "Our comparable sales performance was fueled by growth in the Pro business," adding that he was, "encouraged by the early signs of stabilization in our DIY business."
He also added that DIY comparable sales were "consistent with Q1 and improved on a two-year basis," which is a longer-term measure of performance.
However, like Genuine, the company was forced to lower its full-year guidance expectation due to ongoing market headwinds.
Investors were largely focused on the company’s revised full-year outlook. Advance Auto Parts' stock dropped by over 7.5 percent immediately following the earnings release.
Oh really, O'Reilly?
Not all U.S.-based aftermarket businesses suffered selling to hobbyists -- O'Reilly Automotive Inc. certainly bucked the trend.
The Springfield, Missouri-based aftermarket parts company saw strong comparable store sales growth of 4.1 percent in across its professional and do-it-yourself segments.
Despite the professional segment outpacing the DIY business in terms of sales growth, O'Reilly's management noted that the DIY segment saw positive growth, driven by a rise in the average ticket size per customer.
It also reported Q2 revenue of US$4.53 billion (CAD $6.21 billion). Its adjusted diluted EPS of US$0.78 (CAD $1.07), up 11 percent from the previous year.
After the release of its Q2 figures, O'Reilly stock rose by 4.5 percent.
