Car service firm Monro's Q2 profit beats on operational improvements, cost controls

Monro

29/10/2025 11:41

Overview

Monro fiscal Q2 sales fell 4.1% yr/yr, missing analyst expectations

Adjusted EPS for fiscal Q2 beats consensus, reflecting improved operational efficiency

Company's comparable store sales rose 1.1%, driven by growth in shocks and brakes

Outlook

Monro is not providing fiscal 2026 guidance at this time

Company expects positive comp store sales in fiscal 2026

Monro anticipates higher year-over-year adjusted operating income

Result Drivers

STORE CLOSURES - Sales decline attributed to closure of 145 underperforming stores, partially offset by 1.1% increase in comparable store sales

GROSS MARGIN EXPANSION - Gross margin increased 40 basis points due to lower occupancy and material costs, offset by higher labor costs

OPERATIONAL IMPROVEMENTS - Adjusted EPS rose due to operational improvements and cost controls, despite sales decline

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$288.91 mln
$297.37 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$0.21
$0.17 (5 Analysts)
Q2 EPS
$0.18
Q2 Net Income
$5.66 mln
Q2 COMPARABLE STORE SALES Growth
1.10%


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 $18.00, about 0.4% below its October 28 closing price of $18.08

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw90shnNa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)