Monro, Inc. Announces Second Quarter Fiscal 2025 Financial Results
Monro Inc reported second quarter fiscal 2025 financial results showing a 6.4% decrease in sales to $301.4 million. Comparable store sales declined 5.8%, with batteries showing 20% growth while other categories experienced decreases. The company's operating income was $13.2 million (4.4% of sales), down from $22.4 million (6.9%) in the prior year. Net income decreased to $5.6 million from $12.9 million, with diluted EPS falling to $0.18 from $0.40. The company generated $88 million in operating cash flow during the first half of fiscal 2025 and maintained a strong liquidity position of $529 million.
Monro Inc ha riportato i risultati finanziari del secondo trimestre dell'anno fiscale 2025, evidenziando una diminuzione del 6,4% delle vendite, che si sono attestate a 301,4 milioni di dollari. Le vendite nei negozi comparabili sono diminuite del 5,8%, con le batterie che hanno registrato una crescita del 20%, mentre altre categorie hanno subito delle diminuzioni. L'utile operativo dell'azienda è stato di 13,2 milioni di dollari (4,4% delle vendite), in calo rispetto ai 22,4 milioni di dollari (6,9%) dell'anno precedente. Il reddito netto è sceso a 5,6 milioni di dollari rispetto ai 12,9 milioni, con un utile per azione diluito che è passato a 0,18 dollari da 0,40 dollari. L'azienda ha generato 88 milioni di dollari di flusso di cassa operativo nella prima metà dell'anno fiscale 2025 e ha mantenuto una solida posizione di liquidità di 529 milioni di dollari.
Monro Inc reportó los resultados financieros del segundo trimestre del año fiscal 2025, mostrando una disminución del 6,4% en las ventas, alcanzando los 301,4 millones de dólares. Las ventas en tiendas comparables cayeron un 5,8%, con baterías mostrando un crecimiento del 20%, mientras que otras categorías experimentaron descensos. Los ingresos operativos de la compañía fueron de 13,2 millones de dólares (4,4% de las ventas), cayendo de 22,4 millones de dólares (6,9%) del año anterior. El ingreso neto disminuyó a 5,6 millones de dólares desde 12,9 millones, con un EPS diluido que pasó de 0,40 a 0,18 dólares. La empresa generó 88 millones de dólares en flujo de efectivo operativo durante la primera mitad del año fiscal 2025 y mantuvo una sólida posición de liquidez de 529 millones de dólares.
Monro Inc는 2025 회계연도 2분기 재무 결과를 발표하며 매출이 6.4% 감소한 3억 1천 140만 달러를 기록했다고 전했습니다. 비교 가능한 매장 매출은 5.8% 감소했으며, 배터리 부문은 20% 성장한 반면 다른 카테고리는 하락세를 보였습니다. 회사의 영업 수익은 1천 320만 달러(매출의 4.4%)로, 전년의 2천 240만 달러(6.9%)에서 감소했습니다. 순이익은 560만 달러로 줄어들었고, 희석된 주당순이익(EPS)은 0.40 달러에서 0.18 달러로 떨어졌습니다. 회사는 2025 회계연도 상반기에 8천 800만 달러의 운영 현금 흐름을 창출했으며, 5억 2천 900만 달러의 견고한 유동성 위치를 유지하고 있습니다.
Monro Inc a annoncé les résultats financiers du deuxième trimestre de l'exercice 2025, montrant une diminution de 6,4 % des ventes à 301,4 millions de dollars. Les ventes dans les magasins comparables ont diminué de 5,8 %, les batteries ayant affiché une croissance de 20 %, tandis que d'autres catégories ont connu des baisses. Le résultat opérationnel de l'entreprise était de 13,2 millions de dollars (4,4 % des ventes), contre 22,4 millions de dollars (6,9 %) l'année précédente. Le revenu net a chuté à 5,6 millions de dollars contre 12,9 millions de dollars, avec un BPA dilué tombant à 0,18 dollar contre 0,40 dollar. L'entreprise a généré 88 millions de dollars de flux de trésorerie opérationnel au cours de la première moitié de l'exercice 2025 et a maintenu une position de liquidité solide de 529 millions de dollars.
Monro Inc berichtete über die finanziellen Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 und verzeichnete einen Rückgang der Verkäufe um 6,4% auf 301,4 Millionen US-Dollar. Die vergleichbaren Umsatzverkäufe fielen um 5,8%, wobei Batterien ein Wachstum von 20% zeigten, während andere Kategorien Rückgänge erlebten. Das Betriebsergebnis des Unternehmens betrug 13,2 Millionen US-Dollar (4,4% des Umsatzes), ein Rückgang von 22,4 Millionen US-Dollar (6,9%) im Vorjahr. Der Reingewinn fiel auf 5,6 Millionen US-Dollar von 12,9 Millionen US-Dollar, während der verwässerte Gewinn pro Aktie von 0,40 auf 0,18 US-Dollar fiel. Das Unternehmen erwirtschaftete in der ersten Hälfte des Geschäftsjahres 2025 einen operativen Cash-Flow von 88 Millionen US-Dollar und hielt eine starke Liquiditätsposition von 529 Millionen US-Dollar aufrecht.
- Generated strong operating cash flow of $88 million in first half of fiscal 2025
- Maintained robust liquidity position of $529 million
- Achieved 20% comparable store sales growth in batteries category
- Showed sequential improvement in comparable store sales from Q1
- Overall sales decreased 6.4% to $301.4 million
- Comparable store sales declined 5.8%
- Operating income dropped to 4.4% of sales from 6.9%
- Net income decreased 56.6% to $5.6 million
- Diluted EPS declined 55% to $0.18 from $0.40
- Gross margin decreased 40 basis points
Insights
The Q2 FY2025 results reveal concerning trends for Monro. Sales declined
Despite these challenges, there are some positive signals: strong cash generation of
The declining margins and store closures (12 in Q2) indicate operational challenges, but sequential improvements in tire sales and service categories point to potential stabilization.
The automotive repair market is showing mixed signals through Monro's results. While battery sales increased
The company's strategic initiatives, including ConfiDrive digital inspections and targeted oil change promotions, are showing early positive results. The improvement in alignment attachment rates and September's growth in tire units indicate these operational changes may be gaining traction. With 1,272 company-operated stores and 50 franchised locations, Monro maintains significant market presence despite recent closures.
- Drove 410 Basis Point Sequential Improvement in Year-over-Year Comparable Store Sales Percentage Change from the First Quarter of Fiscal 2025
-
Generated Cash from Operating Activities of
for the First Half of Fiscal 2025$88 Million -
Distributed Second Quarter Fiscal 2025 Cash Dividend of
$.28 per Share
Second Quarter Results
Sales for the second quarter of the fiscal year ending March 29, 2025 (“fiscal 2025”) decreased
Comparable store sales increased
Gross margin decreased 40 basis points compared to the prior year period, primarily resulting from higher material costs due to mix within tires and higher fixed occupancy costs as a percentage of sales, partially offset by lower technician labor costs as a percentage of sales.
Total operating expenses for the second quarter of fiscal 2025 were
Operating income for the second quarter of fiscal 2025 was
Interest expense was
Income tax expense in the second quarter of fiscal 2025 was
Net income for the second quarter of fiscal 2025 was
During the second quarter of fiscal 2025, the Company closed 12 stores. Monro ended the quarter with 1,272 company-operated stores and 50 franchised locations.
“We drove sequential improvement in our year-over-year comparable store sales percentage change from the first quarter as well as a significant acceleration in our comp trends as the second quarter progressed. Importantly, our tire dollar and unit sales improved sequentially from the first quarter and our tire category exited the quarter with year-over-year growth in units in the month of September. Our ConfiDrive digital courtesy inspection process and our oil change offer allowed us to drive sequential improvement from the first quarter in our service category sales as well as year-over-year growth in both battery units and sales dollars in the quarter. Additionally, we improved our attachment rate for alignments, which resulted in year-over-year growth in both alignment units and sales dollars in the month of September. Encouragingly, our sales momentum from the second quarter has continued into fiscal October with our preliminary comparable store sales down only
Broderick continued, “We expect to leverage our sales momentum in October as well as continued traction from our initiatives to achieve our third quarter objectives.”
First Six Months Results
For the current six-month period:
-
Sales decreased
8.4% to from$594.6 million in the same period of the prior year. Comparable store sales decreased$649.1 million 7.8% , compared to a decrease of0.9% in the prior year period.
-
Gross margin for the six-month period was
36.3% , compared to35.3% in the prior year period.
-
Operating income was
4.4% of sales, compared to6.1% in the prior year period.
-
Net income for the first six months of fiscal 2025 was
, or$11.5 million $.37 per diluted share, as compared to , or$21.7 million $.68 per diluted share in the prior year period.
-
Adjusted diluted earnings per share, a non-GAAP measure, in the first six months of fiscal 2025 was
$.39 . This compares to adjusted diluted earnings per share of$.72 in the first six months of fiscal 2024. Please refer to the reconciliation of adjusted diluted earnings per share in the table below for details regarding excluded costs in the first six months of fiscal 2025 and 2024. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure.
Strong Financial Position
During the first half of fiscal 2025, the Company generated operating cash flow of
Second Quarter Fiscal 2025 Cash Dividend
On September 10, 2024, the Company paid a cash dividend for the second quarter of fiscal 2025 of
Company Expectations
Monro is not providing fiscal 2025 financial guidance at this time but will provide perspective on its expectations for 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, October 30, 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 881759. A replay will be available approximately two hours after the recording through Wednesday, November 13, 2024 and can be accessed by dialing 1-866-813-9403 and using the required access code of 278261. 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,” “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, net gain on sale of the Company’s corporate headquarters, 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
MONRO, INC.
|
||||||
|
Quarter Ended Fiscal
|
|
||||
|
2024 |
2023 |
% Change |
|||
|
|
|
|
|
|
|
Sales |
$ |
301,391 |
$ |
322,091 |
(6.4)% |
|
|
|
|
|
|
||
Cost of sales, including occupancy costs |
|
195,014 |
|
207,118 |
(5.8)% |
|
|
|
|
|
|
|
|
Gross profit |
|
106,377 |
|
114,973 |
(7.5)% |
|
|
|
|
|
|
|
|
Operating, selling, general and administrative expenses |
93,175 |
|
92,618 |
|
||
Operating income |
|
13,202 |
|
22,355 |
(40.9)% |
|
|
|
|
|
|
|
|
Interest expense, net |
|
5,136 |
|
4,801 |
|
|
|
|
|
|
|
|
|
Other income, net |
|
(110) |
|
(34) |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
8,176 |
|
17,588 |
(53.5)% |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
2,529 |
|
4,716 |
(46.4)% |
|
|
|
|
|
|
|
|
Net income |
$ |
5,647 |
$ |
12,872 |
(56.1)% |
|
|
|
|
|
|
||
Diluted earnings per share |
$ |
0.18 |
$ |
0.40 |
(55.0)% |
|
|
|
|
|
|
|
|
Weighted average number of diluted shares outstanding |
|
31,224 |
|
32,272 |
|
|
|
|
|
|
|
|
|
Number of stores open (at end of quarter) |
|
1,272 |
|
1,298 |
|
MONRO, INC.
|
||||||
|
Six Months Ended Fiscal
|
|
||||
|
2024 |
2023 |
% Change |
|||
|
|
|
|
|
|
|
Sales |
$ |
594,573 |
$ |
649,059 |
(8.4)% |
|
|
|
|
|
|
||
Cost of sales, including occupancy costs |
|
379,010 |
|
419,691 |
(9.7)% |
|
|
|
|
|
|
|
|
Gross profit |
|
215,563 |
|
229,368 |
(6.0)% |
|
|
|
|
|
|
|
|
Operating, selling, general and administrative expenses |
189,114 |
|
189,664 |
(0.3)% |
||
Operating income |
|
26,449 |
|
39,704 |
(33.4)% |
|
|
|
|
|
|
|
|
Interest expense, net |
|
10,279 |
|
10,009 |
|
|
|
|
|
|
|
|
|
Other income, net |
|
(201) |
|
(92) |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
16,371 |
|
29,787 |
(45.0)% |
|
|
|
|
|
|
|
|
Provision for income taxes |
|
4,861 |
|
8,086 |
(39.9)% |
|
|
|
|
|
|
|
|
Net income |
$ |
11,510 |
$ |
21,701 |
(47.0)% |
|
|
|
|
|
|
||
Diluted earnings per share |
$ |
0.37 |
$ |
0.68 |
(45.6)% |
|
|
|
|
|
|
|
|
Weighted average number of diluted shares outstanding |
|
31,201 |
|
32,112 |
|
MONRO, INC.
|
|||||
September 28,
|
March 30,
|
||||
Assets |
|||||
|
|
|
|
|
|
Cash and equivalents |
$ |
20,859 |
|
$ |
6,561 |
|
|
|
|
|
|
Inventory |
|
161,983 |
|
|
154,085 |
|
|
|
|
|
|
Other current assets |
|
83,996 |
|
|
92,643 |
|
|
|
|
|
|
Total current assets |
|
266,838 |
|
|
253,289 |
|
|
|
|
|
|
Property and equipment, net |
|
272,523 |
|
|
280,154 |
|
|
|
|
|
|
Finance lease and financing obligation assets, net |
|
178,789 |
|
|
180,803 |
Operating lease assets, net |
|
195,300 |
|
|
202,718 |
|
|
|
|
|
|
Other non-current assets |
|
767,850 |
|
|
775,850 |
|
|
|
|
|
|
Total assets |
$ |
1,681,300 |
|
$ |
1,692,814 |
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
$ |
501,566 |
|
$ |
455,156 |
|
|
|
|
|
|
Long-term debt |
|
62,000 |
|
|
102,000 |
Long-term finance leases and financing obligations |
|
241,203 |
|
|
249,484 |
|
|
|
|
|
|
Long-term operating lease liabilities |
|
173,734 |
|
|
181,852 |
|
|
|
|
|
|
Other long-term liabilities |
|
50,858 |
|
|
47,547 |
|
|
|
|
|
|
Total liabilities |
|
1,029,361 |
|
|
1,036,039 |
|
|
|
|
|
|
Total shareholders’ equity |
|
651,939 |
|
|
656,775 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
1,681,300 |
|
$ |
1,692,814 |
MONRO, INC.
|
|||||
|
Quarter Ended Fiscal
|
||||
2024 |
2023 |
||||
Diluted EPS |
$ |
0.18 |
$ |
0.40 |
|
Store impairment charges |
|
0.02 |
|
− |
|
Transition costs related to back-office optimization |
|
0.01 |
|
0.00 |
|
Store closing costs |
|
0.01 |
|
(0.00) |
|
Costs related to shareholder matters |
|
− |
|
0.01 |
|
Net gain on sale of corporate headquarters (a) |
|
(0.06) |
|
0.00 |
|
Adjusted Diluted EPS |
$ |
0.17 |
$ |
0.41 |
|
Note: Amounts may not foot due to rounding. |
Supplemental Reconciliation of Adjusted Net Income
|
|||||
|
|||||
|
Quarter Ended Fiscal
|
||||
|
2024 |
|
2023 |
||
Net Income |
$ |
5,647 |
$ |
12,872 |
|
Store impairment charges |
|
1,031 |
|
− |
|
Transition costs related to back-office optimization |
|
553 |
|
97 |
|
Store closing costs |
|
531 |
|
(43) |
|
Costs related to shareholder matters |
|
− |
|
439 |
|
Net gain on sale of corporate headquarters (a) |
|
(2,764) |
|
60 |
|
Provision for income taxes on pre-tax adjustments (b) |
|
177 |
|
(143) |
|
Adjusted Net Income |
$ |
5,175 |
$ |
13,282 |
MONRO, INC.
|
|||||
|
Six Months Ended
|
||||
2024 |
2023 |
||||
Diluted EPS |
$ |
0.37 |
$ |
0.68 |
|
Store impairment charges |
|
0.04 |
|
− |
|
Transition costs related to back-office optimization |
|
0.03 |
|
0.01 |
|
Store closing costs |
|
0.02 |
|
0.00 |
|
Costs related to shareholder matters |
|
− |
|
0.03 |
|
Acquisition due diligence and integration costs |
|
− |
|
0.00 |
|
Net gain on sale of corporate headquarters (a) |
|
(0.06) |
|
0.00 |
|
Adjusted Diluted EPS |
$ |
0.39 |
$ |
0.72 |
|
Note: Amounts may not foot due to rounding. |
Supplemental Reconciliation of Adjusted Net Income
|
|||||
|
|||||
|
Six Months Ended
|
||||
|
2024 |
|
2023 |
||
Net Income |
$ |
11,510 |
$ |
21,701 |
|
Store impairment charges |
|
1,551 |
|
− |
|
Transition costs related to back-office optimization |
|
1,150 |
|
641 |
|
Store closing costs |
|
712 |
|
4 |
|
Costs related to shareholder matters |
|
− |
|
1,275 |
|
Acquisition due diligence and integration costs |
|
− |
|
5 |
|
Net gain on sale of corporate headquarters (a) |
|
(2,639) |
|
60 |
|
Provision for income taxes on pre-tax adjustments (b) |
|
(210) |
|
(502) |
|
Adjusted Net Income |
$ |
12,074 |
$ |
23,184 |
a) Amount includes gain on sale of corporate headquarters building, net of closing and relocation costs.
b) 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/20241030478813/en/
Investors and Media: Felix Veksler
Senior Director, Investor Relations
ir@monro.com
Source: Monro, Inc.
FAQ
What was Monro's (MNRO) revenue in Q2 fiscal 2025?
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