Monro Announces Third Quarter Fiscal 2025 Financial Results

Monro, Inc. (NASDAQ: MNRO), a prominent provider of automotive undercar repair and tire services, recently released its financial results for the third quarter that concluded on December 28, 2024.

The company reported a 3.7% decline in sales for the third quarter of fiscal 2025, amounting to $305.8 million in contrast to $317.7 million for the same period in fiscal 2024. Despite the overall downturn, there was observed improvement in comparable store sales, which dipped by 0.8%, showing a significant 500 basis point enhancement from the prior quarter. Notably, the sales figures for batteries, alignments, and front end/shocks saw positive trends, increasing by 30%, 13%, and 6%, respectively. However, there were declines in tire sales by 1%, maintenance services by 2%, and brakes by 6%, when compared to the previous year.

Gross margin experienced a 120 basis point decrease, chiefly due to higher material costs offset by lower technician labor costs. Operating expenses stood at $94.8 million, representing 31.0% of sales, reflecting an increase from the prior year due to higher costs related to store operations. Operating income for the third quarter saw a considerable drop from $21.4 million in the previous year to $10.0 million this year.

In terms of earnings, Monro reported a net income of $4.6 million for the third quarter of fiscal 2025, down from $12.2 million recorded in the same period of fiscal 2024, resulting in diluted earnings per share of $0.15 compared to $0.38 in the prior year. Adjusted diluted earnings per share for the third quarter of fiscal 2025 was reported at $0.19, contrasting with $0.39 in the corresponding period of fiscal 2024.

Despite financial challenges and a changing market landscape, Monro remains resilient. The company closed a total of 9 stores during the quarter, leaving it with 1,263 company-operated stores and 48 franchised locations.

Company executives are optimistic about leveraging initiatives to achieve their fourth quarter objectives. Monro is refraining from providing fiscal 2025 financial guidance at this moment but will offer insights during its upcoming earnings conference call scheduled for Wednesday, January 29, 2025, at 8:30 a.m. Eastern Time.

Investors and stakeholders can access the company’s earnings conference call by dialing 1-833-470-1428 with the access code of 875581, and a replay will be available until February 12, 2025. Further details can be found at corporate.monro.com/investors.

Monro, Inc., with a keen focus on sustainable growth, continues to enhance its national presence by providing quality service and automotive solutions to customers across the nation. As of December 28, 2024, the company reported $103 million in operating cash flow and total liquidity of $521 million, indicating a strong financial standing.

Please note this write-up is based on information obtained from Monro’s 8-K filing with the Securities and Exchange Commission and the supplementary exhibit 99.1.

Source: Monro, Inc.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Monro’s 8K filing here.

Monro Company Profile

Monro, Inc provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment.