Monro Reports Q4 Sales Decline of 0.2%

Monro, Inc. has reported its fourth-quarter and fiscal 2024 financial results, highlighting several key metrics and changes compared to the prior year period.

In the fourth quarter of fiscal 2024, Monro's sales decreased by 0.2% to $310.1 million compared to the same period in fiscal 2023. However, the company noted a 0.1% increase in comparable store sales on a reported basis, and a 7.2% decrease when adjusted for days. This decline was attributed to a strained low-to-middle income consumer base trading down to lower-margin tires.

Gross margin for the fourth quarter increased by 210 basis points compared to the prior year period, primarily due to lower technician labor costs and reduced material costs as a percentage of sales. However, total operating expenses for the quarter were $99.7 million, or 32.2% of sales, representing an increase of $2.1 million compared to the prior year period.

Operating income for the fourth quarter of fiscal 2024 was reported at $10.3 million, or 3.3% of sales, compared to $6.2 million, or 2.0% of sales in the prior year period. Net income for the fourth quarter of fiscal 2024 was $3.7 million, a significant increase from $0.4 million in the same period of the prior year. Adjusted diluted earnings per share for the quarter also saw a notable increase from $.08 in fiscal 2023 to $.21 in fiscal 2024.

For the full fiscal year 2024, Monro reported a 3.7% decrease in sales, totaling $1.277 billion, compared to $1.325 billion in fiscal 2023. Comparable store sales decreased by 2.0% on a reported basis and 3.9% adjusted for days. However, the company's gross margin for fiscal 2024 increased to 35.4% from 34.4% in the prior year period.

The company's total operating expenses for fiscal 2024 were $380.7 million, representing an increase compared to the prior year period, primarily attributed to higher non-recurring costs. Operating income for fiscal 2024 was reported at $71.4 million, or 5.6% of sales, compared to $79.8 million, or 6.0% of sales in the prior year period. Net income for fiscal 2024 was $37.6 million, or $1.18 per diluted share, compared to $39.0 million, or $1.20 per diluted share in the prior year period. Adjusted diluted earnings per share for fiscal 2024 was $1.33, a slight decrease from $1.36 in fiscal 2023.

During fiscal 2024, Monro generated operating cash flow of $125 million and had total liquidity of $475 million as of March 30, 2024. The company paid a cash dividend for the fourth quarter of fiscal 2024 of $.28 per share and has approved a cash dividend for the first quarter of fiscal year 2025 of $.28 per share.

Monro did not repurchase any shares under its current board authorization during the fourth quarter of fiscal 2024, but it repurchased 1.5 million shares of its common stock at an average price of $28.50 for $44 million during fiscal 2024.

The company concluded by stating that it is not providing fiscal 2025 financial guidance at this time but will offer perspective on its expectations for the fiscal first quarter and the full year of fiscal 2025 during its earnings conference call.

Monro, Inc. (NASDAQ: MNRO) is a leading provider of automotive undercar repair and tire services, operating approximately 1,300 stores and 9,000 service bays nationwide.

The company's press release did not provide fiscal 2023 financial results for the first quarter, second quarter, and third quarter, which could have provided a more comprehensive assessment of the company's performance over the two fiscal years. Today the company's shares have moved -8.4% to a price of $23.79. For the full picture, make sure to review Monro's 8-K report.

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