| Metric | Value ($ M) | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Revenue | 283.64 | 1.2% | 1.8% |
| Total Income | 283.64 | 1.2% | 1.8% |
| Expenditure | 281.05 | 0.8% | 1.8% |
| PBT | -1.94 | 3.0% | 123.0% |
| Net Profit | -1.61 | 25.1% | 128.4% |
| OPM | 0.91% | 0.37pp | 3.50pp |
| NPM | -0.57% | 0.18pp | 2.53pp |
| EPS | -0.05 | 37.5% | 127.8% |
Monro Announces Second Quarter Fiscal 2027 Financial Results
29 Oct 2026 · 29 Oct, 5:11 pm
Summary
Monro, Inc. reported a 1.8% decrease in sales for the second quarter of fiscal 2027, reaching $283.6 million, driven by a comparable store sales decline of 1.8%. Gross margin decreased by 50 basis points due to higher occupancy costs, and operating income fell significantly to $2.6 million from $12.8 million in the prior year. The company reported a net loss of $1.6 million for the quarter. Despite the challenging environment, management expressed confidence that the foundation being laid will translate into improved performance as conditions normalize.
Key Highlights
- 1
Sales for the second quarter of fiscal 2027 decreased 1.8% to $283.6 million compared to $288.9 million in the prior year period.
- 2
Comparable store sales decreased 1.8% from continuing store locations, with decreases in alignments, tires, and brakes, but increases in batteries and maintenance services.
- 3
Gross margin decreased 50 basis points compared to the prior year period, primarily due to higher occupancy costs.
- 4
Operating income for the second quarter of fiscal 2027 was $2.6 million, or 0.9% of sales, compared to $12.8 million, or 4.4% of sales in the prior year period.
- 5
Net loss for the second quarter of fiscal 2027 was $1.6 million, or a loss of $0.05 per diluted share, compared to a net income of $5.7 million, or $0.18 per diluted share, in the same period of the prior year.
- 6
The Company entered into new credit facilities providing for $375.0 million in senior secured credit facilities.
Management Comments
Peter Fitzsimmons
Our second quarter comparable store sales declined 1.8%, reflecting an operating environment which continued to challenge the full-service auto aftermarket. This was driven by lower store traffic, consumers that continued to defer higher-ticket spending decisions and traded-down to lower cost alternatives in tires, and our use of self-funded promotions to drive unit growth in our brake category. The effectiveness of our ConfiDrive courtesy inspection process helped us drive average repair order growth in the quarter, and it was a key contributor to the comparable store sales gains we saw in batteries and maintenance services. These results reinforce that Monro’s full-service model is a genuine competitive advantage, and that when we execute it well, customers respond. The ability to identify a customer’s vehicle needs in real time, communicate them clearly, and address them with quality and care is what distinguishes a full-service provider, and our results in these categories reflect that strength. The traction we’re seeing from our District Manager Toolkit continues to build. With the toolkit now deployed across a majority of our store network and our newly established operating efficiency team actively coaching and training in the field, we are seeing early but meaningful bottom-line improvement in a subset of our locations. Importantly, we maintained our marketing investment during the quarter, even as sales fell short of where we wanted them to be. Our initiatives are designed to strengthen our competitive position through cycles like this one and we remain confident that the foundation we are laying today will translate into improved performance as conditions normalize.
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