Monro Muffler Brake estimates comparable store sales will be down
Monro Muffler Brake, Inc. anticipates 1% comparable store sales growth for the second quarter of fiscal 2008, which ends Sept. 30. The company plans to release its second-quarter 2008 results and revised fiscal year 2008 guidance on Oct. 23, 2007.
For the full year, the company has revised its expected range for comparable store sales growth to 2% to 4%, which compares with its previous expected range of 3% to 5%, as stated in its first-quarter 2008 earnings release.
As previously indicated, Monro's comparable store sales for July were flat. In August, comparable store sales growth rebounded to 4% due to increases in certain product categories, including brakes and alignments.
However, comparable store sales for September have been weaker than expected, and are currently projected to decrease by 1% for the month. The expected results for September are largely due to a challenging economic environment and softness in consumer spending, according to Monro.
"Our business has been pressured by challenges in the macro-economic environment and weakening consumer confidence," says CEO Robert Gross. "As is sometimes the case with our business, challenging conditions cause our loyal consumers to temporarily delay big ticket purchases until they feel more confident in the economy.
"While we are disappointed with our performance in the second quarter, we remain confident in the long-term strength of our businesses model and our strong position in the market. We are pleased with the on-track performance of the recently acquired Craven and Valley Forge businesses, and going forward, we will continue to seek growth through reasonably priced acquisitions especially as tough economic conditions create additional opportunities."
Monro's board of directors declared a three-for-two stock split of the company's common stock in the form of a 50% stock dividend, payable on Oct. 1, 2007, to shareholders of record at the close of business on Sept. 21, 2007.