"We are on a journey for profitable growth... We were going to rely on our vendor partners to help support us, making sure that they are helping us drive value with the tire category."
— Michael Broderick
03Detailed Report
MNRO
Monro Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 23, 2026
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Executive Summary
In Q1 2025, Monro Inc reported a decrease in revenue to $293.2 million, a decline of 10.3% year-over-year primarily driven by a 9.9% drop in comparable store sales. However, throughout the quarter, there was an observable acceleration in trends, with June showing signs of recovery as comparable store sales improved. Management highlighted a significant growth in tire sales, aided by manufacturer-funded promotions and an enhanced inspection process to optimize services related to battery units. While net income decreased by 33.3% to $5.9 million, gross margins improved, reflected by a 220 basis-point increase due to optimized labor costs and reduced material expenses. Looking forward, Monro aims to build on these initial positive trends to enhance store traffic and margin recovery, positioning the company for potential growth as market conditions stabilize.
Key Performance Indicators
Revenue
Decreasing
293.18M
QoQ: -5.45% | YoY: -8.98%
Gross Profit
Decreasing
109.19M
37.24% margin
QoQ: -0.79% | YoY: -5.03%
Operating Income
Decreasing
13.25M
QoQ: 28.13% | YoY: -40.75%
Net Income
Decreasing
5.86M
QoQ: 58.46% | YoY: -54.45%
EPS
Decreasing
0.18
QoQ: 50.00% | YoY: -55.00%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Overview
- Revenue: $293.2 million, down 10.3% YoY
- Net Income: $5.9 million, down 33.3% YoY
- Gross Margin: 37.2%, up 220 basis points YoY
- Operating Income: $13.2 million, or 4.5% of sales; decline from 5.3% the previous year.
- EPS: $0.19, down from $0.28 YoY
- Cash Flow from Operations: $26 million, with a cash conversion cycle reduction by 15 days.
Market Analysis
Monro's comparable store sales saw a notable recovery, moving from a decline of 13% in April to just 5% in June, indicating a positive trend following recent initiatives. Management emphasized the reliability of promoting tire sales while asserting that non-tire service categories still require improvement. Gross margin growth was attributed to labor optimization and cost management, crucial for sustaining profitability amid challenging sales conditions.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
293.18M
-8.98%
-5.45%
Gross Profit
109.19M
-5.03%
-0.79%
Operating Income
13.25M
-40.75%
28.13%
Net Income
5.86M
-54.45%
58.46%
EPS
0.18
-55.00%
50.00%
Key Financial Ratios
Gross Profit Margin
Fair
37.20%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
4.52%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.34%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.90%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.59
Current ratio below safe levels, potential liquidity risk