Monro, Inc. reported second quarter 2027 results that fell short of analyst estimates, as persistent consumer deferrals of high-ticket automotive services and lower store traffic weighed on the top line. The company recorded a net loss for the period, pressured by a shift toward lower-cost tire alternatives and higher operating expenses, which rose to 34.3% of sales compared to 31.3% in the prior year.
Key Highlights
- Comparable store sales decreased 1.8%, missing the -1.7% analyst consensus, driven by a 4% decline in both tires and brakes categories.
- Adjusted diluted loss per share was $0.01, missing the estimated $0.05 profit, as gross margin contracted 50 basis points to 35.2% due to higher occupancy costs.
- Operating income fell to $2.6 million from $12.8 million in the prior year, impacted by $6.1 million in store closing costs and $3.2 million in increased marketing spend.
- The company secured a new $375 million senior secured credit facility with Ares Capital maturing in 2030, replacing its prior 2019 agreement and paying down its supply chain financing program.