Monro, Inc. (Nasdaq: MNRO) posts $2.1M Q1 net loss as sales decline 4.6%
Rhea-AI Filing Summary
Monro, Inc. reported first-quarter fiscal 2027 results for the quarter ended June 27, 2026. Sales decreased 4.6% to $287.1 million from $301.0 million, driven by a $9.0 million reduction from 145 underperforming stores closed in fiscal 2026 and a 1.7% decline in comparable store sales from continuing locations. Comparable store sales rose 8% in batteries and 1% in front end/shocks and alignments, but fell 1% in tires and brakes and 5% in maintenance services.
Gross margin fell 50 basis points, mainly from higher occupancy costs, partly offset by lower technician labor as a percentage of sales. Operating expenses declined to $96.7 million, or 33.7% of sales, from $113.0 million, or 37.5%, reflecting $17.8 million lower store closing costs, $4.1 million lower costs from closed stores, and $3.7 million lower consulting costs, offset by $4.9 million higher marketing and $4.6 million higher costs at continuing locations. Operating income improved to $3.7 million (1.3% of sales) from a $6.1 million loss, while adjusted operating income declined to $2.2 million from $14.0 million.
Net loss narrowed to $2.1 million, with diluted loss per share of $0.08, compared with a $8.1 million net loss and $0.28 diluted loss per share a year earlier. Adjusted diluted results were a $0.09 loss per share versus $0.22 adjusted diluted earnings per share in the prior-year quarter. Monro ended the quarter with $9.5 million in cash and equivalents, $261.5 million of availability under its credit facility, 1,115 company-operated stores and 47 franchised locations, and paid a $0.28 per-share cash dividend.
Positive
- Operating performance improved, with operating income of $3.7 million (1.3% margin) in the quarter versus a $6.1 million operating loss in the prior-year period.
- Profitability and liquidity indicators strengthened, as net loss narrowed to $2.1 million from $8.1 million while the company maintained a $0.28 per-share dividend and had $261.5 million available under its credit facility.
Negative
- Top-line trends were soft, with sales down 4.6% to $287.1 million and comparable store sales declining 1.7% for continuing locations.
- Underlying earnings weakened on an adjusted basis, as adjusted operating income fell to $2.2 million from $14.0 million and adjusted results moved to a $0.09 diluted loss per share from $0.22 earnings.
Filing Explained
As of June 27, cash was $9,526 thousand versus $14,633 thousand on March 28, while long-term debt was $108,435 thousand versus $60,000 thousand.
This filing furnishes Monro’s completed first-quarter fiscal 2027 results for the quarter ended
Form 8-K reports specified material events within four business days; this report’s Item 2.02 content furnishes the earnings release, which the filing says is not deemed filed under Section 18 or incorporated by reference.
At June 27, cash and equivalents were
The company is not providing fiscal 2027 financial guidance at this time and says it will provide perspective on its expectations during the
8-K Event Classification
Key Figures
Key Terms
comparable store sales financial
operational improvement plan financial
pension settlement expense financial
finance lease financial
non-GAAP financial measures financial
Earnings Snapshot
Monro is not providing fiscal 2027 financial guidance at this time but will provide perspective on its expectations for fiscal 2027 during its earnings conference call.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On July 29, 2026, Monro, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended June 27, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Earnings release issued by Monro, Inc. on July 29, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MONRO, INC. | ||||||
| (Registrant) | ||||||
| July 29, 2026 | By: | /s/ Maureen E. Mulholland | ||||
| Maureen E. Mulholland | ||||||
| Executive Vice President – Chief Legal Officer and Secretary | ||||||
Exhibit 99.1
|
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|
295 Woodcliff Drive, Suite 202, Fairport, New York 14450 |
| CONTACT: | Investors and Media: Felix Veksler |
| Vice President, Investor Relations |
| ir@monro.com |
FOR IMMEDIATE RELEASE
MONRO, INC. ANNOUNCES FIRST QUARTER FISCAL 2027 FINANCIAL RESULTS
FAIRPORT, N.Y. – July 29, 2026 – Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive repair and tire services, today announced financial results for its first quarter ended June 27, 2026.
First Quarter Results
Sales for the first quarter of the fiscal year ending March 27, 2027 (“fiscal 2027”) decreased 4.6% to $287.1 million, as compared to sales of $301.0 million for the first quarter of the fiscal year ended March 28, 2026 (“fiscal 2026”). This was primarily driven by a reduction in sales of $9.0 million from the closure of 145 underperforming stores in the first quarter of fiscal 2026, as well as a 1.7% decrease in comparable store sales from continuing store locations.
Comparable store sales increased 8% for batteries and 1% for front end/shocks and alignments compared to the prior year period. Comparable store sales decreased 1% for tires and brakes and 5% for maintenance services 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.
Gross margin decreased 50 basis points compared to the prior year period, primarily from higher occupancy costs as a percentage of sales, which were partially offset by lower technician labor costs as a percentage of sales.
Total operating expenses for the first quarter of fiscal 2027 were $96.7 million, or 33.7% of sales, as compared to $113.0 million, or 37.5% of sales in the prior year period. The decrease was primarily driven by $17.8 million of lower store closing costs in the first quarter of fiscal 2027, $4.1 million of lower costs from the closure of 145 underperforming stores in the first quarter of fiscal 2026, and $3.7 million of lower costs incurred in connection with consultants related to the Company’s operational improvement plan. These were partially offset by $4.9 million of increased marketing costs to support the Company’s topline and $4.6 million of increased costs at continuing locations, primarily front shop labor.
Operating income for the first quarter of fiscal 2027 was $3.7 million, or 1.3% of sales, as compared to an operating loss of $6.1 million, or -2.0% of sales in the prior year period. Adjusted operating income, a non-GAAP measure, for the first quarter of fiscal 2027 was $2.2 million, or 0.8% of sales, as compared to adjusted operating income of $14.0 million, or 4.7% of sales in the prior year period. Please refer to the reconciliation of adjusted operating income in the table below for details regarding excluded items in the first quarters of fiscal 2027 and 2026. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure.
Interest expense was $4.6 million for the first quarter of fiscal 2027, as compared to $4.8 million for the first quarter of fiscal 2026, principally due to lower weighted average debt, which was driven by a decrease in finance lease obligations related to the Company’s store locations.
Income tax expense in the first quarter of fiscal 2027 was $0.2 million, or an effective tax rate of -7.7%, compared to an income tax benefit of $2.7 million, or an effective tax rate of 24.8% in the prior year period. The year-over-year difference in effective tax rate is primarily related to a decrease in unrecognized tax benefits as well as the impact from other adjustments, none of which are significant, on the change in pre-tax loss.
Net loss for the first quarter of fiscal 2027 was $2.1 million, as compared to a net loss of $8.1 million in the same period of the prior year. Diluted loss per share for the first quarter of fiscal 2027 was $.08. This compares to diluted loss per share of $.28 in the first quarter of fiscal 2026. Adjusted diluted loss per share, a non-GAAP measure, for the first quarter of fiscal 2027 was $.09. This compares to adjusted diluted earnings per share of $.22 in the first quarter of fiscal 2026. Please refer to the reconciliation of adjusted net (loss) income and adjusted diluted (loss) earnings per share in the tables below for details regarding excluded items in the first quarters of fiscal 2027 and 2026. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of these non-GAAP measures.
Monro ended the first quarter with 1,115 company-operated stores and 47 franchised locations.
“Our first quarter comparable store sales declined 1.7%, reflecting an operating environment, which continued to challenge the full-service auto aftermarket. This was driven by lower store traffic as well as consumers that continued to defer higher-ticket spending decisions in tires and brakes and traded-down to lower-cost alternatives in our tire category. However, and importantly, we were able to hold our tire unit volumes flat, and we believe this allowed us to take market share, both in our tier one tires as well as in our overall tire category in the quarter. We believe that this is a direct result of our promotional effectiveness and the timely expansion of our tier four tire offerings, which allowed us to meet the needs of our customers across the price spectrum. The effectiveness of our ConfiDrive courtesy inspection process helped us drive average repair order growth in the quarter. This was driven by meaningful improvements in certain of our higher-margin service categories, including batteries, alignments, and front/end shocks. This performance reinforces that we continue to deliver genuine value to our full-service customers, even in a difficult spending environment. Importantly, we maintained our marketing investment during the quarter, despite the sales headwinds we faced”, said Peter Fitzsimmons, President and Chief Executive Officer.
Fitzsimmons continued, “While we’re not satisfied with our results, we remain confident that the operational progress we’ve made is building a foundation for improved performance as consumer spending stabilizes.”
Financial Position
As of June 27, 2026, the Company had availability under its credit facility of $261.5 million and cash and equivalents of $9.5 million.
First Quarter Fiscal 2027 Cash Dividend
On June 16, 2026, the Company paid a cash dividend for the first quarter of fiscal 2027 of $.28 per share.
Environmental, Social & Governance (ESG)
Monro recently released its sixth annual ESG Report, which covers fiscal 2026. The report highlights the Company’s ESG initiatives, including ongoing commitments to operational excellence and responsible business practices as the foundation for driving growth, strengthening relationships, and delivering long-term value to stakeholders. The report is available on the Company’s corporate website at corporate.monro.com/esg/default.aspx.
Company Expectations
Monro is not providing fiscal 2027 financial guidance at this time but will provide perspective on its expectations for fiscal 2027 during its earnings conference call.
Earnings Conference Call and Webcast
The Company will host a conference call and audio webcast on July 29, 2026 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-800-715-9871 and using the required access code of 4507272. A replay will be available approximately two hours after the recording through Wednesday, August 12, 2026 and can be accessed by dialing 1-800-770-2030 and using the required access code of 4507272. A replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com/investors.
About Monro, Inc.
Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading automotive service and tire providers, delivering best-in-class auto care to communities across the country, from oil changes, tires and parts installation, to the most complex vehicle repairs. With a focus on sustainable growth, the Company generated approximately $1.2 billion in sales in fiscal 2026. Monro brings customers the professionalism and high-quality service they expect from a national retailer, with the convenience and trust of a neighborhood garage. Monro’s highly trained teammates and certified technicians bring together hands-on experience and state-of-the-art technology to diagnose and address automotive needs every day to get customers back on the road safely. For more information, please visit corporate.monro.com.
Cautionary Note Regarding Forward-Looking Statements
The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words and phrases as “continue,” “expect,” “may,” “believe,” “focus,” “will,” “plan,” “should,” “estimate,” and other similar words or phrases. Forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to uncertainty related to the financial and operational impact of the operational improvement plan, product demand, advances in automotive technologies including adoption of electric vehicle technology, our dependence on third parties for certain inventory, dependence on and competition within the primary markets in which the Company’s stores are located, the effect of general business or economic and geopolitical conditions on the Company’s business, including consumer spending levels, inflation, and unemployment, seasonality, our ability to generate sufficient cash flows from operations and service our debt obligations and comply with the terms of our credit agreement, changes in the U.S. trade environment, including the impact of tariffs on imported products, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, the impact of weather trends and natural disasters, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to protection of customer and employee personal data, risks relating to litigation, risks relating to integration of acquired businesses and other factors set forth elsewhere herein and in the Company’s Securities and Exchange Commission filings, including the Company’s annual report on Form 10-K for the fiscal year ended March 28, 2026. Except as required by law, the Company does not undertake and specifically disclaims any obligation to update any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Non-GAAP Financial Measures
In addition to reporting operating income (loss), net loss, and diluted loss per share, which are generally accepted accounting principles (“GAAP”) measures, this press release includes adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share, which are non-GAAP financial measures. The Company has included reconciliations from adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share to their most directly comparable GAAP measures, operating income (loss), net loss, and diluted loss per share. Management views these non-GAAP financial measures as a way to better assess comparability between periods because management believes the non-GAAP financial measures show the Company’s core business operations while excluding certain items that are not part of our core operations such as pension settlement expense, consulting costs related to the Company’s operational improvement plan, transition costs related to back-office optimization, write-off of debt issuance costs, costs related to shareholder matters, and store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations.
These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures.
These non-GAAP financial measures may be different from similarly titled non-GAAP financial measures used by other companies.
Comparable Store Sales
The Company defines comparable store sales as sales for locations that have been opened or owned at least one full fiscal year. The Company believes this period is generally required for new store sales levels to begin to normalize. Management uses comparable store sales to assess the operating performance of the Company’s stores and believes the metric is useful to investors because the Company’s overall results are dependent upon the results of its stores.
Source: Monro, Inc.
MNRO-Fin
###
MONRO, INC.
Financial Highlights
(Unaudited)
(Dollars and share counts in thousands)
| Quarter Ended Fiscal June |
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| 2026 | 2025 | % Change | ||||||||||
| Sales |
$ | 287,129 | $ | 301,035 | (4.6 | )% | ||||||
| Cost of sales, including occupancy costs |
186,734 | 194,129 | (3.8 | )% | ||||||||
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| Gross profit |
100,395 | 106,906 | (6.1 | )% | ||||||||
| Operating, selling, general and administrative expenses |
96,700 | 112,981 | (14.4 | )% | ||||||||
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| Operating income (loss) |
3,695 | (6,075 | ) | 160.8 | % | |||||||
| Interest expense, net |
4,635 | 4,784 | (3.1 | )% | ||||||||
| Other expense (income), net |
1,056 | (158 | ) | 768.4 | % | |||||||
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| Loss before income taxes |
(1,996 | ) | (10,701 | ) | 81.3 | % | ||||||
| Provision for (benefit from) income taxes |
153 | (2,651 | ) | 105.8 | % | |||||||
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| Net loss |
$ | (2,149 | ) | $ | (8,050 | ) | 73.3 | % | ||||
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| Diluted loss per share |
$ | (0.08 | ) | $ | (0.28 | ) | 71.4 | % | ||||
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| Weighted average number of diluted shares outstanding |
30,145 | 29,967 | ||||||||||
| Number of stores open (at end of quarter) |
1,115 | 1,115 | ||||||||||
MONRO, INC.
Financial Highlights
(Unaudited)
(Dollars in thousands)
| June 27, 2026 |
March 28, 2026 |
|||||||
| Assets |
||||||||
| Cash and equivalents |
$ | 9,526 | $ | 14,633 | ||||
| Inventory |
156,225 | 155,270 | ||||||
| Other current assets |
65,980 | 66,738 | ||||||
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| Total current assets |
231,731 | 236,641 | ||||||
| Property and equipment, net |
239,346 | 241,857 | ||||||
| Finance lease and financing obligation assets, net |
142,842 | 148,807 | ||||||
| Operating lease assets, net |
179,239 | 175,899 | ||||||
| Other non-current assets |
763,348 | 764,773 | ||||||
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| Total assets |
$ | 1,556,506 | $ | 1,567,977 | ||||
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| Liabilities and Shareholders’ Equity |
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| Current liabilities |
$ | 472,873 | $ | 517,837 | ||||
| Long-term debt |
108,435 | 60,000 | ||||||
| Long-term finance leases and financing obligations |
184,070 | 193,173 | ||||||
| Long-term operating lease liabilities |
159,169 | 156,209 | ||||||
| Other long-term liabilities |
49,457 | 49,285 | ||||||
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| Total liabilities |
974,004 | 976,504 | ||||||
| Total shareholders’ equity |
582,502 | 591,473 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 1,556,506 | $ | 1,567,977 | ||||
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MONRO, INC.
Reconciliation of Adjusted Operating Income
(Unaudited)
(Dollars in Thousands)
| Quarter Ended Fiscal June |
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| 2026 | 2025 | |||||||
| Operating Income (Loss) |
$ | 3,695 | $ | (6,075 | ) | |||
| Consulting costs related to operational improvement plan |
1,009 | 4,722 | ||||||
| Transition costs related to back-office optimization |
333 | 571 | ||||||
| Costs related to shareholder matters |
80 | — | ||||||
| Store closing costs, net (a) |
(2,960 | ) | 14,816 | |||||
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| Adjusted Operating Income |
$ | 2,157 | $ | 14,034 | ||||
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MONRO, INC.
Reconciliation of Adjusted Net (Loss) Income
(Unaudited)
(Dollars in Thousands)
| Quarter Ended Fiscal June |
||||||||
| 2026 | 2025 | |||||||
| Net Loss |
$ | (2,149 | ) | $ | (8,050 | ) | ||
| Pension settlement expense |
1,171 | — | ||||||
| Consulting costs related to operational improvement plan |
1,009 | 4,722 | ||||||
| Transition costs related to back-office optimization |
333 | 571 | ||||||
| Write-off of debt issuance costs |
221 | 263 | ||||||
| Costs related to shareholder matters |
80 | — | ||||||
| Store closing costs, net (a) |
(2,960 | ) | 14,816 | |||||
| Provision for (benefit from) income taxes on pre-tax adjustments (b) |
38 | (5,297 | ) | |||||
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| Adjusted Net (Loss) Income |
$ | (2,257 | ) | $ | 7,025 | |||
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MONRO, INC.
Reconciliation of Adjusted Diluted (Loss) Earnings Per Share
(Unaudited)
| Quarter Ended Fiscal June |
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| 2026 | 2025 | |||||||
| Diluted Loss Per Share |
$ | (0.08 | ) | $ | (0.28 | ) | ||
| Pension settlement expense |
0.03 | — | ||||||
| Consulting costs related to operational improvement plan |
0.02 | 0.12 | ||||||
| Transition costs related to back-office optimization |
0.01 | 0.01 | ||||||
| Write-off of debt issuance costs |
0.01 | 0.01 | ||||||
| Costs related to shareholder matters |
0.00 | — | ||||||
| Store closing costs, net (a) |
(0.07 | ) | 0.37 | |||||
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| Adjusted Diluted (Loss) Earnings Per Share |
$ (0.09) | $ | 0.22 | |||||
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Note: Amounts may not foot due to rounding.
| a) | Amounts include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the store closure plan, net of related gains on the sale of owned locations, lease assignments and early lease terminations. |
| b) | The adjustments to diluted (loss) earnings per share reflect estimated annual effective income tax rates of 26.0 percent for the quarters ended fiscal June 2026 and 2025. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate. |