Gross profit rose 28.5% Y/Y to $141.5 million, and the margin contracted 160 basis points Y/Y to 33.9%.
The operating margin contracted 120 basis points to 11.9%, and operating income for the quarter rose 21.8% to $49.5 million.
Adjusted EPS of $1.29 missed the analyst consensus of $1.32.
Dorman Products held $51.9 million in cash and equivalents as of June 25, 2022. Cash provided by operating activities totaled $14.2 million for the three months ended June 25, 2022.
The company’s board authorized a $100 million increase and a two-year extension to the share repurchase program. The company had $129.5 million remaining under its prior share repurchase authorization.
“While the demand environment remained strong throughout the quarter, we still face a challenging macroeconomic environment given the dynamics of inflation, rising interest rates, tight labor conditions, and global supply chain disruptions,” said CEO Kevin Olsen.
Outlook: Dorman Products reaffirmed its FY22 guidance with net sales growth of 19% – 22% to $1.6 billion – $1.64 billion (consensus $1.65 billion).
The company cut the FY22 adjusted EPS outlook to $5.00 – $5.20 (previously $5.35 – $5.55), against the consensus of $5.53.
Price Action: DORM shares closed higher by 0.03% at $116.76 on Friday.
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