Overview

• Monro fiscal Q2 sales fell 4.1% yr/yr, missing analyst expectations

• Adjusted EPS for fiscal Q2 beats consensus, reflecting improved operational efficiency

• Company's comparable store sales rose 1.1%, driven by growth in shocks and brakes

Outlook

• Monro is not providing fiscal 2026 guidance at this time

• Company expects positive comp store sales in fiscal 2026

• Monro anticipates higher year-over-year adjusted operating income

Result Drivers

• STORE CLOSURES - Sales decline attributed to closure of 145 underperforming stores, partially offset by 1.1% increase in comparable store sales

• GROSS MARGIN EXPANSION - Gross margin increased 40 basis points due to lower occupancy and material costs, offset by higher labor costs

• OPERATIONAL IMPROVEMENTS - Adjusted EPS rose due to operational improvements and cost controls, despite sales decline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for Monro Inc is $18.00, about 0.4% below its October 28 closing price of $18.08

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw90shnNa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)