MNRO
Monro Inc
Q1 2026 Report
Monro Inc (MNRO) Q1 2026 Financial Results: Navigating Challenges for Future Growth...
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Executive Summary
Monro Inc's second quarter of fiscal 2025 presented a mixed performance characterized by improved trends in comparable store sales but persistent challenges in gross margins. Revenue for Q2 2025 was reported at $301.4 million, representing a year-over-year decline of 6.4% and a quarter-over-quarter increase of 2.8%. Despite this drop, management remains optimistic about sequential sales growth and an improving trajectory in unit sales, particularly in the tire segment, which has shown low single-digit year-over-year growth in September.
Management highlighted ongoing efforts to strengthen the service category through initiatives like the ConfiDrive Digital Courtesy Inspection Process and special promotions that cater to a value-oriented consumer base. However, the gross margin came under pressure, decreasing by 40 basis points due to increased material costs and a mix shift towards lower-tier tire offerings. Overall, while the revenue performance reflects adaptation to market conditions, the company is faced with the challenge of stabilizing margins while simultaneously pursuing sales growth.
Key Performance Indicators
Revenue
301.39M
QoQ: 2.80% | YoY:-5.12%
Gross Profit
106.38M
35.30% margin
QoQ: -2.57% | YoY:-5.59%
Operating Income
12.55M
QoQ: -5.23% | YoY:-41.29%
Net Income
5.65M
QoQ: -3.68% | YoY:-53.60%
EPS
0.18
QoQ: 0.00% | YoY:-52.63%
Revenue Trend
Margin Analysis
Key Insights
- **Revenue**: $301.39 million (YoY: -6.4%, QoQ: +2.8%)
- **Gross Profit**: $106.38 million (YoY: -5.59%, QoQ: -2.57%)
- **Operating Income**: $12.55 million (YoY: -41.29%, QoQ: -5.23%)
- **Net Income**: $5.65 million (YoY: -53.60%, QoQ: -3.68%)
- **EPS**: $0.18 (YoY: -52.63%)