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Mar 25, 2023
Monro Q4 2023 Earnings Report
Monro's Q4 2023 financial results were announced, revealing a decrease in sales due to the divestiture of wholesale tire and distribution assets, while comparable store sales increased.
Key Takeaways
Monro, Inc. reported a decrease in sales for the fourth quarter of fiscal year 2023, primarily due to the divestiture of its Wholesale tire and distribution assets. However, comparable store sales increased, driven by strong performance in small or underperforming stores. The company's profitability fell short of expectations due to labor cost pressures and customer trade-downs. Monro is implementing pricing actions and cost reductions to improve gross margins.
Sales decreased to $310.8 million due to the divestiture of Wholesale tire and distribution assets.
Comparable store sales increased 4.5%, driven by a 7% increase in small or underperforming stores.
Diluted EPS was $.01, and adjusted diluted EPS was $.08.
The company approved a first quarter fiscal 2024 cash dividend of $.28 per share.
Monro
Monro
Forward Guidance
For the first quarter of fiscal 2024, Monro expects total company sales to be in the range of $330 million to $335 million, with comparable store sales growth of 2% to 3%. The company anticipates a gross margin rate in the range of 35.8% to 36.2% and a diluted EPS range of $.36 to $.42.
Positive Outlook
- Total company sales are expected to be in the range of $330 million to $335 million.
- Comparable store sales growth is projected to be in the range of 2% to 3%.
- Preliminary comparable store sales are up approximately 2% quarter-to-date.
- Gross margin rate is expected to be in the range of 35.8% to 36.2%.
- Diluted EPS is anticipated to be in the range of $.36 to $.42.