Monro Q3 sales slightly miss on store closures

Overview

• Automotive service provider's Q3 revenue slightly missed analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company's gross margin expanded 60 basis points yr/yr

Outlook

• Monro expects positive comp store sales for full fiscal 2026

• Company anticipates higher consumer tax refunds to boost sales

• Sales momentum continues into fiscal January with comp store sales up nearly 1%

Result Drivers

• STORE CLOSURES - Closure of 145 underperforming stores in Q1 fiscal 2026 led to a 4% decline in total sales

• COMPARABLE STORE SALES - 1.2% increase in comparable store sales driven by strong tire and front end/shocks performance

• GROSS MARGIN EXPANSION - Gross margin improved by 60 basis points due to lower material and occupancy costs

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy."

• Wall Street's median 12-month price target for Monro Inc is $20.00, about 0.1% below its January 27 closing price of $20.03

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw3nj6rSa

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