Monro, Inc. Announces First Quarter Fiscal 2025 Financial Results
Monro, Inc. (NASDAQ: MNRO) reported its Q1 fiscal 2025 financial results. Key highlights include:
- Sales decreased 10.3% to $293.2 million
- Comparable store sales decreased 9.9%
- Gross margin expanded 220 basis points
- Diluted EPS of $0.19; Adjusted diluted EPS of $0.22
- Generated $26 million in operating cash flow
- Paid quarterly dividend of $0.28 per share
The company saw improvements in tire and battery sales in June, and expects recently implemented initiatives to drive growth in Q2. Monro ended the quarter with 1,284 company-operated stores and 51 franchised locations.
Monro, Inc. (NASDAQ: MNRO) ha riportato i risultati finanziari per il primo trimestre dell'anno fiscale 2025. I punti salienti includono:
- Le vendite sono diminuite del 10,3% a 293,2 milioni di dollari
- Le vendite negli stessi negozi sono calate del 9,9%
- Il margine lordo è aumentato di 220 punti base
- EPS diluito di 0,19 dollari; EPS diluito rettificato di 0,22 dollari
- Generato 26 milioni di dollari di flusso di cassa operativo
- Dividendo trimestrale pagato di 0,28 dollari per azione
La società ha registrato miglioramenti nelle vendite di pneumatici e batterie a giugno e si aspetta che le iniziative recentemente attuate stimolino la crescita nel secondo trimestre. Monro ha chiuso il trimestre con 1.284 negozi gestiti direttamente e 51 sedi in franchising.
Monro, Inc. (NASDAQ: MNRO) reportó sus resultados financieros del primer trimestre del año fiscal 2025. Los aspectos más destacados incluyen:
- Las ventas disminuyeron un 10.3%, alcanzando 293.2 millones de dólares
- Las ventas en tiendas comparables cayeron un 9.9%
- El margen bruto se expandió en 220 puntos básicos
- EPS diluido de 0.19 dólares; EPS diluido ajustado de 0.22 dólares
- Se generaron 26 millones de dólares en flujo de efectivo operativo
- Se pagó un dividendo trimestral de 0.28 dólares por acción
La empresa vio mejoras en las ventas de neumáticos y baterías en junio y espera que las iniciativas recientemente implementadas impulsen el crecimiento en el segundo trimestre. Monro finalizó el trimestre con 1,284 tiendas operadas por la empresa y 51 ubicaciones franquiciadas.
Monro, Inc. (NASDAQ: MNRO)는 2025 회계연도 1분기 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:
- 매출이 10.3% 감소하여 2억 9,320만 달러에 달했습니다.
- 비교 가능한 매장 매출이 9.9% 감소했습니다.
- 총 마진이 220bp 확대되었습니다.
- 희석 주당순이익(EPS)은 0.19 달러, 조정 희석 EPS는 0.22 달러였습니다.
- 운영 현금 흐름으로 2천 6백만 달러를 생성했습니다.
- 주식당 0.28 달러의 분기 배당금을 지급했습니다.
회사는 6월에 타이어 및 배터리 판매가 개선되었으며, 최근 시행된 이니셔티브가 2분기 성장에 기여할 것으로 기대하고 있습니다. Monro는 1,284개 회사 운영 매장과 51개 프랜차이즈 매장을 보유하며 분기를 종료했습니다.
Monro, Inc. (NASDAQ: MNRO) a annoncé ses résultats financiers pour le premier trimestre de l'exercice 2025. Les points saillants comprennent :
- Les ventes ont diminué de 10,3 % à 293,2 millions de dollars
- Les ventes en comparable ont chuté de 9,9 %
- La marge brute s'est élargie de 220 points de base
- Bénéfice par action dilué de 0,19 dollar; Bénéfice par action dilué ajusté de 0,22 dollar
- Généré 26 millions de dollars de flux de trésorerie d'exploitation
- Dividende trimestriel de 0,28 dollar par action payé
L'entreprise a constaté des améliorations dans les ventes de pneus et de batteries en juin et s'attend à ce que les initiatives récemment mises en œuvre favorisent la croissance au deuxième trimestre. Monro a terminé le trimestre avec 1 284 magasins gérés par la société et 51 emplacements sous franchise.
Monro, Inc. (NASDAQ: MNRO) hat seine finanziellen Ergebnisse für das erste Quartal des Geschäftsjahres 2025 veröffentlicht. Die wichtigsten Punkte sind:
- Der Umsatz sank um 10,3% auf 293,2 Millionen Dollar
- Die vergleichbaren Verkaufszahlen in den Geschäften gingen um 9,9% zurück
- Die Bruttomarge erweiterte sich um 220 Basispunkte
- Der verwässerte Gewinn pro Aktie (EPS) beträgt 0,19 Dollar; der bereinigte verwässerte EPS beträgt 0,22 Dollar
- Es wurden 26 Millionen Dollar an operativem Cashflow generiert
- Eine quartalsweise Dividende von 0,28 Dollar pro Aktie wurde gezahlt
Das Unternehmen verzeichnete im Juni Verbesserungen bei Reifen- und Batterieverkäufen und erwartet, dass die kürzlich umgesetzten Initiativen das Wachstum im zweiten Quartal vorantreiben. Monro beendete das Quartal mit 1.284 betriebenen Geschäften und 51 Franchise-Standorten.
- Gross margin expanded by 220 basis points
- Generated $26 million in operating cash flow
- Improvement in tire and battery sales trends in June
- Maintained strong liquidity position of $477 million
- Sales decreased 10.3% to $293.2 million
- Comparable store sales decreased 9.9%
- Net income declined to $5.9 million from $8.8 million in the prior year
- Diluted EPS decreased to $0.19 from $0.28 in the prior year
Insights
Monro's Q1 fiscal 2025 results paint a mixed picture. While the company faced challenges with a 10.3% decrease in sales to
The standout metric is the 220 basis point increase in gross margin. This improvement, driven by lower technician labor costs and material costs as a percentage of sales, is a significant step towards restoring pre-COVID margin levels. However, this was partially offset by higher fixed occupancy costs relative to sales.
The company's financial position remains strong, with
The gradual improvement in sales trends throughout the quarter, particularly in the tire and battery categories, is encouraging. The return to growth in tire units in June suggests that Monro's promotional strategies and digital initiatives are gaining traction.
However, investors should be cautious. The decline in diluted EPS from
In summary, while Monro faces headwinds, its margin improvement and strategic initiatives provide some optimism for potential recovery in the coming quarters.
Monro's Q1 results offer valuable insights into current consumer behavior in the automotive service sector. The
The varying degrees of decline across service categories are particularly telling:
- Batteries:
6% decrease - Tires:
8% decrease - Alignments:
9% decrease - Maintenance services:
10% decrease - Brakes:
13% decrease - Front end/shocks:
15% decrease
The smaller decline in battery sales compared to other categories suggests that consumers are prioritizing essential components necessary for basic vehicle operation. The larger drops in services like brakes and front end/shocks indicate that consumers may be postponing more expensive, discretionary repairs.
However, the company's report of improving trends as the quarter progressed, particularly in tire and battery sales, could signal a potential shift in consumer behavior. This may be driven by a combination of pent-up demand and the effectiveness of Monro's targeted promotional strategies.
The success of digital initiatives like the ConfiDrive digital courtesy inspection process and service coupons highlights the growing importance of technology-driven customer engagement in the automotive service industry. This trend is likely to continue, potentially reshaping customer acquisition and retention strategies across the sector.
Overall, while the results indicate current consumer caution, the gradual improvement in sales trends suggests a potential stabilization or recovery in consumer spending on automotive services in the near future.
- First Quarter Gross Margin Expanded 220 Basis Points
-
First Quarter Diluted EPS of
$.19 ; Adjusted Diluted EPS1 of$.22 -
Generated Cash from Operating Activities of
$26 Million -
Distributed First Quarter Fiscal 2025 Cash Dividend of
$.28 per Share - Released Fourth Annual Environmental, Social & Governance (ESG) Report
First Quarter Results
Sales for the first quarter of the fiscal year ending March 29, 2025 (“fiscal 2025”) decreased
Comparable store sales decreased
Gross margin increased 220 basis points compared to the prior year period, primarily resulting from lower technician labor costs as a percentage of sales and lower material costs as a percentage of sales, which were partially offset by higher fixed occupancy costs as a percentage of sales.
Total operating expenses for the first quarter of fiscal 2025 were
Operating income for the first quarter of fiscal 2025 was
Interest expense was
Income tax expense in the first quarter of fiscal 2025 was
Net income for the first quarter of fiscal 2025 was
During the first quarter of fiscal 2025, the Company closed 4 stores. Monro ended the quarter with 1,284 company-operated stores and 51 franchised locations.
“We drove a significant acceleration in our comparable store sales trends as the first quarter progressed. Importantly, we turned the corner in our tire category with a return to growth in units in the month of June, as we continued to leverage the strength of our manufacturer-funded promotions. The combination of our ConfiDrive digital courtesy inspection process, service coupon and oil change offer allowed us to drive growth in both battery units and sales dollars in the month of June as well as an improvement in our higher-margin service categories as the quarter progressed. Our gross margin expansion in the quarter represents another major step toward restoring our gross margins back to pre-COVID levels”, said Mike Broderick, President and Chief Executive Officer.
Broderick continued, “We are confident that we have begun to see our recently implemented initiatives take hold and this will enable us to achieve our second quarter objectives.”
Strong Financial Position
During the first quarter of fiscal 2025, the Company generated operating cash flow of
First Quarter Fiscal 2025 Cash Dividend
On June 18, 2024, the Company paid a cash dividend for the first quarter of fiscal 2025 of
Environmental, Social & Governance (ESG)
Monro recently released its fourth annual ESG Report, which covers fiscal year 2024. The report highlights the actions Monro is taking every day to create an inclusive and thriving culture for its teammates, deliver world class service for its guests, positively impact the communities where it operates, and make sustainable decisions for the environment. The report is available on the Company’s corporate website at corporate.monro.com/esg/default.aspx.
Company Expectations
Monro is not providing fiscal 2025 financial guidance at this time but will provide perspective on its expectations for the fiscal second quarter as well as the full year of fiscal 2025 during its earnings conference call.
Earnings Conference Call and Webcast
The Company will host a conference call and audio webcast on Wednesday, July 31, 2024 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-833-470-1428 and using the required access code of 425992. A replay will be available approximately two hours after the recording through Wednesday, August 14, 2024 and can be accessed by dialing 1-866-813-9403 and using the required access code of 179581. A replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com/investors.
About Monro, Inc.
Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading automotive service and tire providers, delivering best-in-class auto care to communities across the country, from oil changes, tires and parts installation, to the most complex vehicle repairs. With a growing market share and a focus on sustainable growth, the Company generated almost
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as “expect,” “estimate,” “intend,” “may,” “anticipate,” “believe,” “could,” “focus,” “will,” and other similar words or phrases. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to product demand, advances in automotive technologies including adoption of electric vehicle technology, our dependence on third parties for certain inventory, dependence on and competition within the primary markets in which the Company’s stores are located, the effect of general business or economic and geopolitical conditions on the Company’s business, including consumer spending levels, inflation, and unemployment, seasonality, our ability to service our debt obligations and comply with the terms of our credit agreement, changes in the
Non-GAAP Financial Measures
In addition to reporting diluted earnings per share (“EPS”), which is a generally accepted accounting principles (“GAAP”) measure, this press release includes adjusted diluted EPS, which is a non-GAAP financial measure. The Company has included a reconciliation from adjusted diluted EPS to its most directly comparable GAAP measure, diluted EPS. Management views this non-GAAP financial measure as a way to better assess comparability between periods because management believes the non-GAAP financial measure shows the Company’s core business operations while excluding certain non-recurring items such as costs related to shareholder matters from the Company’s equity capital structure recapitalization, transition costs related to the Company’s back-office optimization, store impairment charges, corporate headquarters relocation costs, and items related to store closings.
This non-GAAP financial measure is not intended to represent, and should not be considered more meaningful than, or as an alternative to, its most directly comparable GAAP measure. This non-GAAP financial measure may be different from similarly titled non-GAAP financial measures used by other companies.
Comparable Store Sales
The Company defines comparable store sales as sales for locations that have been opened or owned at least one full fiscal year. The Company believes this period is generally required for new store sales levels to begin to normalize. Management uses comparable store sales to assess the operating performance of the Company’s stores and believes the metric is useful to investors because the Company’s overall results are dependent upon the results of its stores.
Source: Monro, Inc.
MNRO-Fin
1 |
Adjusted diluted EPS is a non-GAAP measure. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure. |
MONRO, INC. |
||||||||||
Financial Highlights |
||||||||||
(Unaudited) |
||||||||||
(Dollars and share counts in thousands) |
||||||||||
|
Quarter Ended Fiscal June |
|||||||||
|
|
2024 |
|
|
|
2023 |
|
% Change |
||
|
|
|
|
|
|
|
||||
Sales |
$ |
293,182 |
|
|
$ |
326,968 |
|
(10.3 |
)% |
|
|
|
|
|
|
||||||
Cost of sales, including occupancy costs |
|
183,997 |
|
|
|
212,572 |
|
(13.4 |
)% |
|
|
|
|
|
|
|
|||||
Gross profit |
|
109,185 |
|
|
|
114,396 |
|
(4.6 |
)% |
|
|
|
|
|
|
|
|||||
Operating, selling, general and administrative expenses |
95,939 |
|
|
|
97,047 |
|
(1.1 |
)% |
||
Operating income |
|
13,246 |
|
|
|
17,349 |
|
(23.6 |
)% |
|
|
|
|
|
|
|
|||||
Interest expense, net |
|
5,144 |
|
|
|
5,208 |
|
(1.2 |
)% |
|
|
|
|
|
|
|
|||||
Other income, net |
|
(93 |
) |
|
|
(58 |
) |
60.3 |
% |
|
|
|
|
|
|
|
|||||
Income before income taxes |
|
8,195 |
|
|
|
12,199 |
|
(32.8 |
)% |
|
|
|
|
|
|
|
|||||
Provision for income taxes |
|
2,332 |
|
|
|
3,370 |
|
(30.8 |
)% |
|
|
|
|
|
|
|
|||||
Net income |
$ |
5,863 |
|
|
$ |
8,829 |
|
(33.6 |
)% |
|
|
|
|
|
|
||||||
Diluted earnings per share |
$ |
0.19 |
|
|
$ |
0.28 |
|
(32.1 |
)% |
|
|
|
|
|
|
|
|||||
Weighted average number of diluted shares outstanding |
|
31,219 |
|
|
|
31,954 |
|
|
||
|
|
|
|
|
|
|||||
Number of stores open (at end of quarter) |
|
1,284 |
|
|
|
1,299 |
|
|
||
MONRO, INC. |
|||||
Financial Highlights |
|||||
(Unaudited) |
|||||
(Dollars in thousands) |
|||||
June 29, 2024 |
March 30, 2024 |
||||
Assets |
|||||
|
|
|
|
|
|
Cash and equivalents |
$ |
18,665 |
|
$ |
6,561 |
|
|
|
|
|
|
Inventory |
|
162,251 |
|
|
154,085 |
|
|
|
|
|
|
Other current assets |
|
97,167 |
|
|
92,643 |
|
|
|
|
|
|
Total current assets |
|
278,083 |
|
|
253,289 |
|
|
|
|
|
|
Property and equipment, net |
|
276,121 |
|
|
280,154 |
|
|
|
|
|
|
Finance lease and financing obligation assets, net |
|
182,860 |
|
|
180,803 |
Operating lease assets, net |
|
200,169 |
|
|
202,718 |
|
|
|
|
|
|
Other non-current assets |
|
775,003 |
|
|
775,850 |
|
|
|
|
|
|
Total assets |
$ |
1,712,236 |
|
$ |
1,692,814 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
$ |
468,654 |
|
$ |
455,156 |
|
|
|
|
|
|
Long-term debt |
|
112,000 |
|
|
102,000 |
Long-term finance leases and financing obligations |
|
248,862 |
|
|
249,484 |
|
|
|
|
|
|
Long-term operating lease liabilities |
|
179,187 |
|
|
181,852 |
|
|
|
|
|
|
Other long-term liabilities |
|
49,112 |
|
|
47,547 |
|
|
|
|
|
|
Total liabilities |
|
1,057,815 |
|
|
1,036,039 |
|
|
|
|
|
|
Total shareholders’ equity |
|
654,421 |
|
|
656,775 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,712,236 |
|
$ |
1,692,814 |
MONRO, INC. |
|||||
Reconciliation of Adjusted Diluted Earnings Per Share (EPS) |
|||||
(Unaudited) |
|||||
|
Quarter Ended Fiscal |
||||
|
June |
||||
2024 |
2023 |
||||
Diluted EPS |
$ |
0.19 |
$ |
0.28 |
|
Transition costs related to back-office optimization |
|
0.01 |
|
0.01 |
|
Store impairment charges |
|
0.01 |
|
− |
|
Store closing costs |
|
0.00 |
|
0.00 |
|
Corporate headquarters relocation costs |
|
0.00 |
|
− |
|
Acquisition due diligence and integration costs |
|
− |
|
0.00 |
|
Costs related to shareholder matters |
|
− |
|
0.02 |
|
Adjusted Diluted EPS |
$ |
0.22 |
$ |
0.31 |
|
Note: Amounts may not foot due to rounding. |
Supplemental Reconciliation of Adjusted Net Income |
|||||
(Unaudited) |
|||||
(Dollars in Thousands) |
|||||
|
Quarter Ended Fiscal |
||||
June |
|||||
2024 |
2023 |
||||
Net Income |
$ |
5,863 |
$ |
8,829 |
|
Transition costs related to back-office optimization |
|
597 |
|
544 |
|
Store impairment charges |
|
520 |
|
− |
|
Store closing costs |
|
181 |
|
47 |
|
Corporate headquarters relocation costs |
|
125 |
|
− |
|
Acquisition due diligence and integration costs |
|
− |
|
5 |
|
Costs related to shareholder matters |
|
− |
|
836 |
|
Provision for income taxes on pre-tax adjustments(a) |
|
(387) |
|
(359) |
|
Adjusted Net Income |
$ |
6,899 |
$ |
9,902 |
|
- The Company determined the Provision for income taxes on pre-tax adjustments by calculating the Company’s estimated annual effective tax rate on pre-tax income before giving effect to any discrete tax items and applying it to the pre-tax adjustments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731355811/en/
Investors and Media: Felix Veksler
Senior Director, Investor Relations
ir@monro.com
Source: Monro, Inc.
FAQ
What were Monro's (MNRO) Q1 fiscal 2025 sales results?
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How much cash did Monro (MNRO) generate from operating activities in Q1 fiscal 2025?
