Overview

* Monro ( MNRO ) 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 ( MNRO ) is not providing fiscal 2026 guidance at this time

* Company expects positive comp store sales in fiscal 2026

* Monro ( MNRO ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $288.91 $297.37

mln mln (5

Analysts

)

Q2 Beat $0.21 $0.17 (5

Adjusted Analysts

EPS )

Q2 EPS $0.18

Q2 Net $5.66

Income mln

Q2 1.10%

COMPARAB

LE STORE

SALES

Growth

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 ( MNRO ) 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:

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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.)