Slide 1: Monro, Inc. Second Quarter Fiscal 2019 Earnings Call
Monro, Inc. Second Quarter Fiscal 2019 Earnings Call October 25, 2018
Slide 2: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement and Non-GAAP Measures Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities
Slide 3: Second Quarter Fiscal 2019 Highlights
Second Quarter Fiscal 2019 Highlights Sustained Top-Line Momentum Driven by Accelerating Comparable Store Sales Y/Y Comps Trend Improvement 2-Year Stacked Comps Trend Improvement3 8.0% 7.0% 6.0% 6.0% 4.0% 5.0% 2.0% 4.0% 0.0% 3.0% Jan-18 Feb-18 1 Mar-18 Apr-18 May-18 2 Jun-18 2 Jul-18 Aug-18 Sep-18 O
Slide 4: A Scalable Platform: Recent Acquisitions
A Scalable Platform: Recent Acquisitions Acquisitions Completed and Announced to Date in Fiscal 2019 Represent $80M in Annualized Sales Announced Acquisitions ▪ Recently signed definitive agreement to acquire five retail locations in Ohio, filling in an existing market ▪ $5M in annualized revenue, b
Slide 5: Omnichannel: Expanded Amazon.com Collaboration
Omnichannel: Expanded Amazon.com Collaboration Expanded Collaboration With Amazon.com Supports Monro’s Online Tire Retailers Installation Strategy Expanded Amazon.com Collaboration ▪ Monro’s tire installation services available to customers who purchase tires online from Amazon.com and select the Sh
Slide 6: Monro.Forward Progress Update
Monro.Forward Progress Update Monro.Forward Initiatives Well Underway and Advancing as Planned Continuing to execute customer satisfaction and online reputation management Improve Customer program across Monro’s store base Experience Focus on the in-store experience is having significant impact
Slide 7: Monro.Forward Progress Update (Cont.)
Monro.Forward Progress Update (Cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned Launched Monro playbook and store re-image initiative pilot in Rochester, NY in the Improve Customer beginning of 3QFY19 Experience Modernized store layout to be rolled out across the Company’s
Slide 8: Monro.Forward Progress Update (Cont.)
Monro.Forward Progress Update (Cont.) Monro.Forward Initiatives Well Underway and Advancing as Planned In 2QFY19, rolled out modernized corporate and retail websites and direct marketing Enhance Customer- through analytic-based CRM platform Centric Engagement Expanded collaboration with Amazon.c
Slide 9: Strong Second Quarter Fiscal 2019 Results
Strong Second Quarter Fiscal 2019 Results Higher Ticket From Improved In-Store Execution Drove Solid Top-Line Performance 2QFY19 2QFY18 Δ 1HFY19 1HFY18 Δ Sales (millions) $307.1 $278.0 10.5% $602.9 $556.5 8.3% Same Store Sales 3.2% -0.4% 360 bps 2.5% 0.5% 200 bps Gross Margin 39.1% 38.8% 30 bps 39.3
Slide 10: Disciplined Capital Allocation
Disciplined Capital Allocation Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation Investing in the Business ▪ 1HFY19 capex of $21.7M ▪ Continue to expect ~$75M of incremental CapEx over the next 5 years to invest in store re-image and technology Executing on
Slide 11: Fiscal 2019 Outlook
Fiscal 2019 Outlook Guide to Upper End of Fiscal 2019 Comparable Store Sales and Reiterate EPS Guidance Operating Margin ▪ Assumes operating margin of 11.1% at midpoint of FY19 sales guidance FY19 FY18 Δ (11.4% excluding FY19 acquisitions announced and completed to date) ▪ Expect stable tire and oil
Slide 12: Second Quarter Fiscal 2019 Key Takeaways
Second Quarter Fiscal 2019 Key Takeaways ▪ Sustained top-line momentum driven by strong comparable store sales ▪ Launched direct marketing through analytic-based CRM platform ▪ Rolled out modernized websites and expanded Amazon.com collaboration ▪ Operational excellence and store reimage initiative
Slide 13: Appendix
Appendix 13
Slide 14: Monro.Forward Strategic Initiatives
Monro.Forward Strategic Initiatives Q4 FY18 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY21 Foundational technology & tools Scale store refresh & operational Pilot store excellence Improve Customer refresh & operational Technology based in-store experience Experience excellence Schedu