Business
Monro, Inc. Announces Fourth Quarter and Fiscal 2020 Financial Results
~ Fiscal 2020 Sales Increase 4.7% to a Record $1.3 Billion ~~ Provides Update on Actions to Mitigate Impact of COVID-19 Pandemic ~~ Not Issuing Fiscal 2021
About this update from Monro, Inc.
[{"type":"text","content":"~ Fiscal 2020 Sales Increase 4.7% to a Record $1.3 Billion ~~ Provides Update on Actions to Mitigate Impact of COVID-19 Pandemic ~~ Not Issuing Fiscal 2021 Guidance Due to Uncertainty Related to COVID-19 ~~ Expands Collaboration with Amazon.com to Provide Tire Installation Services ~~ Draws Down $350 Million on Revolving Credit Facility to Maximize Financial Flexibility ~~ Announces Planned Closure of 42 Stores as Part of Portfolio Optimization ~~ Declares Quarterly Cash Dividend of $.22 Per Share ~\n ROCHESTER, N.Y., May 28, 2020 (GLOBE NEWSWIRE) -- Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, today announced financial results for its fourth quarter and fiscal year ended March 28, 2020, in-line with the Company’s business update provided on April 2, 2020. Fourth Quarter Results Sales for the fourth quarter of the fiscal year ended March 28, 2020 (“fiscal 2020”) decreased 0.4% to $286.1 million, as compared to $287.2 million for the fourth quarter of the fiscal year ended March 30, 2019 (“fiscal 2019”). The total sales decrease for the fourth quarter of $1.1 million was driven by a comparable store sales decline of 9.5%, partially offset by sales from new stores of $23.5 million, including sales from recent acquisitions of $21.9 million. The decline in comparable store sales was primarily driven by a substantial decrease in traffic related to the COVID-19 pandemic late in the quarter, as well as mild winter weather in the Company’s Northern markets in January and February. Comparable store sales were down approximately 8% for maintenance services, 9% for tires, 10% for front end/shocks and 11% for brakes and alignments compared to the prior year period. Gross margin decreased 260 basis points to 35.7% in the fourth quarter of fiscal 2020 from 38.3% in the prior year period, primarily due to lower comparable store sales, which resulted in higher fixed distribution and occupancy costs as a percentage of sales, as well as lower vendor rebates due to slower inventory turns compared to the prior year period, which resulted in higher material costs as a percentage of sales. Total operating expenses increased $20.1 million to $101.7 million, or 35.5% of sales, as compared to $81.6 million, or 28.4% of sales in the prior year period. The year-over-year dollar increase includes $4.3 mill...