Monro, Inc., the Fairport, New York based provider of automotive repair and tire services, reported results for its fiscal 2027 second quarter ended Sept. 26, 2026. Sales fell 1.8% to $283.6 million from $288.9 million a year earlier, driven entirely by a 1.8% decline in comparable store sales.

Batteries and maintenance up, tires and brakes down

Comparable store sales rose 8% for batteries and 3% for maintenance services. They fell 2% for alignments, 4% for tires and brakes and 5% for front end and shocks.

Monro attributed the decline to lower store traffic, consumers deferring higher-ticket purchases and trading down to lower cost tire alternatives, and self-funded promotions used to drive unit growth in brakes. The company credited its ConfiDrive courtesy inspection process with helping grow average repair orders and supporting the gains in batteries and maintenance.

Margins and earnings

Gross margin decreased 50 basis points, mainly from higher occupancy costs as a percentage of sales, partly offset by lower material costs. Operating expenses rose to $97.4 million, or 34.3% of sales, from $90.4 million, or 31.3% of sales, driven largely by a $6.1 million increase in store closing costs net of gains on sales of closed stores, higher labor and marketing costs and higher litigation reserves, partly offset by $7.1 million in lower consultant costs.

Operating income was $2.6 million, or 0.9% of sales, compared with $12.8 million, or 4.4% of sales, a year earlier. Adjusted operating income was $4.4 million versus $14.0 million.

Monro posted a net loss of $1.6 million, or $.05 per diluted share, compared with net income of $5.7 million, or $.18 per diluted share, in the prior year quarter. Adjusted diluted loss per share was $.01, compared with adjusted diluted earnings per share of $.21.

The company closed one store during the quarter and ended the period with 1,114 company-operated stores and 47 franchised locations.

Leadership comments

President and Chief Executive Officer Peter Fitzsimmons said the District Manager Toolkit is now deployed across a majority of the store network and that the company maintained its marketing investment during the quarter.

“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,” Fitzsimmons said.

First half results

For the first six months of fiscal 2027, sales decreased 3.3% to $570.8 million and comparable store sales fell 1.7%. Net loss was $3.8 million, or $.13 per diluted share, compared with a net loss of $2.4 million, or $.10 per diluted share, a year earlier.

More information is available on Monro’s corporate site.

Tagged: Fiscal 2027

Monro Reports Second Quarter Fiscal 2027 Sales Down 1.8% as Tire Comps Fall