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Dec 27, 2025
Monro Q3 2026 Earnings Report
Monro reported a decrease in sales and gross profit, but an increase in net income and diluted EPS for the third quarter of fiscal 2026.
Key Takeaways
Monro, Inc. announced its third quarter fiscal 2026 financial results, with sales decreasing by 4.0% to $293.4 million compared to the prior year. Despite the sales decline, net income increased significantly by 143.1% to $11.1 million, and diluted earnings per share rose by 133.3% to $0.35. The company also reported a 1.2% increase in comparable store sales from continuing store locations, partially offsetting the impact of store closures.
Sales for the third quarter of fiscal 2026 decreased by 4.0% to $293.4 million, primarily due to the closure of 145 underperforming stores.
Net income for the third quarter increased by 143.1% to $11.1 million, and diluted earnings per share rose to $0.35 from $0.15 in the prior year.
Comparable store sales from continuing locations increased by 1.2%, with strong performance in front end/shocks (7%) and tires (5%).
Gross margin expanded by 60 basis points year-over-year to 34.9%, driven by lower material costs and occupancy costs, despite higher technician labor costs.
Forward Guidance
Monro is not providing specific fiscal 2026 financial guidance at this time but expects positive comparable store sales for the full fiscal year, driven by continued sales momentum and anticipated consumer tax refunds.
Positive Outlook
- Sales momentum continued into fiscal January with preliminary comparable store sales up almost 1%.
- Higher expected consumer tax refunds are anticipated to provide a tailwind to topline trends for the remainder of fiscal 2026.
- The company expects to deliver positive comparable store sales for the full fiscal year.
- Monro's team drove growth in comparable store sales in November and December, achieving positive comps on a 2-year stack for the first time in over two years.
- The company successfully reduced inventory levels across the system by over $7 million in the third quarter, achieving an overall reduction of more than $28 million since March.
Challenges Ahead
- The company did not provide specific fiscal 2026 financial guidance at this time.
- Softness in consumer demand was observed in October.
Historical Earnings Impact
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