Monro Inc. recorded a net loss of $21.2 million in its fiscal fourth quarter, ended March 29, which led to a full-year loss of more than $5 million.
The loss during the quarter came on a 4.9% drop in overall sales for the quarter, which had six fewer selling days than the fourth quarter of fiscal 2024.
Comparable store sales showed signs of improvement as the quarter progressed. When adjusted for days, comparable store sales increased 2.8% during the quarter. And there was improvement in nearly every sales category: front end/shocks were up 27%, battery sales increased 25%, while brakes and tires were both up 2% and maintenance services increased 1%. Alignments were down 1% in the period.
“While the results of our fourth quarter were impacted by extreme weather in the first half of the quarter, we drove positive comparable store sales growth in the quarter, adjusted for days, as well as sequential improvement in comparable store sales and gross margin as the months of the quarter progressed. Encouragingly, our sales momentum has continued into our first quarter of fiscal 2026 with preliminary quarter-to-date comparable store sales that are up approximately 7%”, said Peter Fitzsimmons, President and CEO.
Fitzsimmons has been on the job as Monro’s top leader for about eight weeks, and in that time he said the company has undergone a “detailed assessment of the business” and identified four key areas of focus for the future — including the planned closure of 145 underperforming stores by mid-year 2025 and changes to its tire portfolio.
“While our improvement plan will take time to implement, I believe that we will drive enhanced profitability and increase operating income and total shareholder returns in fiscal 2026.”
Full-year results
For the full fiscal year, which ended March 29, 2025, Monro’s sales dropped 6.4%, to $1.195 billion. Monro says the drop was “primarily driven by a pressured low-to-middle income consumer that deferred and traded down purchases in the company’s high-ticket tire category, as well as several of its service categories.” Those deferments and trade downs resulted in a 3.5% drop in comparable store sales for the year, when adjusted for days. In the previous year, Monro’s comparable store sales fell 3.9%.
Operating expenses for the year totaled $405.1 million, or 33.9% of sales, compared to $380.7 million and 29.8% of sales in the previous year. “The increase was principally due to an increase of $22.4 million in store impairment charges related to certain owned and leased assets.”
Monro’s operating income for the 12-month period was 1.1%, compared to 5.6% in fiscal 2024.
Monro recorded a net loss of $5.2 million for the full year, compared to net income of $37.6 million in the previous year.
Guidance for the year ahead
Monro isn’t providing full-year guidance for fiscal 2026, but it did spell out some expectations for the year ahead, including:
- Comparable store sales growth driven by two things — the company’s improvement plan, as well as “any tariff-related price increases to customers.”
- A continuation of sales momentum from the first quarter (March comparable store sales were up 8.2%, followed by a 7.1% increase in April and a 5.9% increase so far in May.) So far, the first fiscal quarter of 2026 is up about 7%.
- The store optimization plan will result in a total sales reduction of about $45 million for fiscal 2026.
- Gross margin will continue to be pressured by inflation and tariff-related increases.
- Some of the cost inflation and tariff cost increases will be offset by benefits from closing underperforming stores and other operational improvements.
- Store closure costs are expected to be in the range of $10 million to $15 million, and will hit the balance sheet primarily in the first quarter of fiscal 2026.
