Business
Monro, Inc. Announces Second Quarter Fiscal 2025 Financial Results
Drove 410 Basis Point Sequential Improvement in Year-over-Year Comparable Store Sales Percentage Change from the First Quarter of Fiscal 2025 Generated Cash
About this update from Monro, Inc.
[{"type":"text","content":"\n\nDrove 410 Basis Point Sequential Improvement in Year-over-Year Comparable Store Sales Percentage Change from the First Quarter of Fiscal 2025\n\n\nGenerated Cash from Operating Activities of $88 Million for the First Half of Fiscal 2025\n\n\nDistributed Second Quarter Fiscal 2025 Cash Dividend of $.28 per Share\n\n\n FAIRPORT, 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 28, 2024.\n\nSecond Quarter Results\n\nSales for the second quarter of the fiscal year ending March 29, 2025 (“fiscal 2025”) decreased 6.4% to $301.4 million, as compared to $322.1 million for the second quarter of the fiscal year ended March 30, 2024 (“fiscal 2024”). Comparable store sales decreased 5.8%, as compared to a decrease in comparable store sales of 2.3% in the prior year period.\n\nComparable store sales increased 20% for batteries and were flat for alignments compared to the prior year period. Comparable store sales decreased 4% for tires, 5% for front end/shocks, 7% for maintenance services, and 12% for brakes 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 40 basis points compared to the prior year period, primarily resulting from higher material costs due to mix within tires and higher fixed occupancy costs as a percentage of sales, partially offset by lower technician labor costs as a percentage of sales.\n\nTotal operating expenses for the second quarter of fiscal 2025 were $93.2 million, or 30.9% of sales, as compared to $92.6 million, or 28.8% of sales in the prior year period. The increase as a percentage of sales was principally due to lower year-over-year comparable store sales and an increase in advertising spend.\n\nOperating income for the second quarter of fiscal 2025 was $13.2 million, or 4.4% of sales, as compared to $22.4 million, or 6.9% of sales in the prior year period.\n\nInterest expense was $5.1 million for the second quarter of fiscal 2025, as compared to $4.8 million for the second quarter of fiscal 2024, principally due to an increase in the Company’s weighted average interest rate.\n\nIncome tax expense in the second quarter of fiscal ...