Business
Monro, Inc. Announces Second Quarter Fiscal 2023 Financial Results
Second Quarter Sales Decreased 5.1% to $329.8 Million, due to the Divestiture of Wholesale Tire and Distribution Assets in First Quarter Fiscal 2023 Second
About this update from Monro, Inc.
[{"type":"text","content":"\n\nSecond Quarter Sales Decreased 5.1% to $329.8 Million, due to the Divestiture of Wholesale Tire and Distribution Assets in First Quarter Fiscal 2023\n\n\nSecond Quarter Comparable Store Sales Increased 1.3%, driven by an ~10% Comparable Store Sales Increase in ~300 Small or Underperforming Stores\n\n\nSecond Quarter Diluted EPS of $.40; Adjusted Diluted EPS1 of $.43\n\n\nGenerated Cash from Operating Activities of ~$120M for the First Half of Fiscal 2023\n\n\nRepurchased ~1.2M Shares of Common Stock; Cumulative Share Repurchases of ~1.6M Shares of Common Stock through Second Quarter at an Average Price of ~$44.00 per share\n\n\n ROCHESTER, N.Y.--(BUSINESS WIRE)--\nMonro, Inc. (Nasdaq: MNRO), a leading provider of automotive undercar repair and tire services, today announced financial results for its second quarter ended September 24, 2022.\n\nSecond Quarter Results2\n\nSales for the second quarter of the fiscal year ending March 25, 2023 (“fiscal 2023”) decreased 5.1% to $329.8 million, as compared to $347.7 million for the second quarter of the fiscal year ended March 26, 2022 (“fiscal 2022”). The total sales decline of $17.9 million was due to the divestiture of the Company’s Wholesale tire and distribution assets in the first quarter of fiscal 2023. Sales for these divested assets were $28.8 million in the second quarter of fiscal 2022. Comparable store sales increased 1.3% for the period, driven by an approximate 10% comparable store sales increase in approximately 300 of the Company’s small or underperforming stores. This compares to an increase in comparable store sales of 14.8% in the prior year period. Sales from new stores increased $8.1 million, primarily from recent acquisitions.\n\nComparable store sales increased approximately 6% for tires and 1% for maintenance services compared to the prior year period. Comparable store sales decreased approximately 5% for brakes and front end/shocks and 8% for alignments compared to the prior year period. Please refer to the “Comparable Store Sales” section below for a discussion of how the Company defines comparable store sales.\n\nGross margin decreased 220 basis points to 35.4% in the second quarter of fiscal 2023 from 37.6% in the prior year period. The decrease was primarily due to a higher mix of tire sales in the Company’s retail locations, customer trade down to openi...