Monro, Inc. Reports Decline in Sales and Financial Losses

By Philip Seaworth • Wednesday, May 28 15:26 • Permanent Link

Monro, Inc. has announced its financial results for the fourth quarter and fiscal year ended March 29, 2025. In the fourth quarter of fiscal 2025, sales decreased by 4.9% to $295.0 million compared to the same period in fiscal 2024. However, comparable store sales increased by 2.8%. The company saw a 27% increase in front end/shocks and a 25% increase in batteries, but a 1% decrease in alignments compared to the prior year period.

The gross margin decreased by 250 basis points, primarily due to higher material costs within tires and increased self-funded promotions. Operating loss for the fourth quarter of fiscal 2025 was $23.8 million, compared to operating income of $10.3 million in the prior year period. Net loss for the fourth quarter of fiscal 2025 was $21.3 million, compared to net income of $3.7 million in the same period of the prior year.

For the full fiscal year 2025, sales decreased by 6.4% to $1.195 billion from $1.277 billion in fiscal 2024, primarily due to a pressured low-to-middle income consumer deferring and trading down purchases in the high-ticket tire category. The gross margin for fiscal 2025 was 34.9%, down from 35.4% in the prior year period.

Monro, Inc. generated operating cash flow of $132 million during fiscal 2025 and had availability under its credit facility of $508.7 million and cash and equivalents of $20.8 million as of March 29, 2025.

As part of its store portfolio review, the company identified 145 underperforming stores for closure during the first quarter of fiscal 2026. Monro, Inc. has approved a cash dividend for the first quarter of fiscal year 2026 of $.28 per share.

The company did not provide fiscal 2026 financial guidance at this time, but will provide perspective on its expectations for fiscal 2026 during its earnings conference call.

Monro, Inc. ended the quarter with 1,260 company-operated stores and 48 franchised locations. Following these announcements, the company's shares moved 28.5%, and are now trading at a price of $16.41. Check out the company's full 8-K submission here.

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