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Sep 27
Monro Q2 2026 Earnings Report
Monro, Inc. announced its second quarter fiscal 2026 financial results, reporting a slight decrease in sales but an increase in net income and adjusted diluted EPS compared to the prior year.
Key Takeaways
Monro, Inc. reported a 4.1% decrease in sales for the second quarter of fiscal 2026, totaling $288.9 million, primarily due to store closures. However, the company achieved a 1.1% increase in comparable store sales from continuing locations, expanded gross margin by 40 basis points, and saw a 0.3% increase in net income to $5.7 million. Adjusted diluted EPS rose to $0.21 from $0.17 in the prior year.
Sales for the second quarter of fiscal 2026 decreased by 4.1% to $288.9 million, primarily due to the closure of 145 underperforming stores.
Comparable store sales from continuing locations increased by 1.1%, marking three consecutive quarters of positive comps.
Gross margin expanded by 40 basis points to 35.7%, driven by lower occupancy and material costs, despite higher technician labor costs.
Net income slightly increased by 0.3% to $5.7 million, and adjusted diluted EPS rose to $0.21 from $0.17 in the prior year period.
Monro
Monro
Forward Guidance
Monro is not providing specific fiscal 2026 financial guidance at this time but expects to deliver positive comparable store sales and meaningfully higher year-over-year adjusted operating income, despite recent softness in consumer demand.
Positive Outlook
- Expects to deliver positive comparable store sales in fiscal 2026.
- Anticipates achieving meaningfully higher year-over-year adjusted operating income.
- Improved inventory management led to a reduction of approximately $11 million in inventory levels.
- Solid gross margin performance with a 40 basis point expansion.
- Prudent operating cost control, reflected in lower store direct costs and good corporate expense control.
Challenges Ahead
- Recent softness in consumer demand, reflected in preliminary October comparable store sales being down 2%.
- No specific fiscal 2026 financial guidance provided at this time.
- The company will provide perspective on expectations during its earnings conference call, indicating some uncertainty.
- The impact of 145 store closures on overall sales volume.
- Potential ongoing challenges from a competitive market and economic conditions.