Monro, Inc. Reports $8.1 Million Net Loss Despite 2.7% Revenue Growth

Monro, Inc. reported a net loss of $8.1 million for the three months ended June 28, 2025, a significant decline from a net income of $5.9 million during the same period in the previous year. The company's revenue increased by 2.7% to $301.0 million, up from $293.2 million in the prior year, driven by a 5.7% increase in comparable store sales. However, the operating loss for the quarter was $6.1 million, compared to an operating income of $13.2 million in the same quarter last year, primarily due to increased operating, selling, general, and administrative expenses, which rose by 17.8% to $113.0 million.

The financial performance reflects several strategic developments, including the closure of 145 underperforming stores as part of a Store Closure Plan approved by the Board of Directors on May 23, 2025. This decision resulted in $14.8 million in net store closing costs recorded during the quarter. The company also amended its credit facility to provide additional operational flexibility, reducing the minimum interest coverage ratio and modifying certain financial covenants. As of June 28, 2025, Monro operated 1,115 retail stores, down from 1,260 a year earlier.

Operationally, Monro's customer engagement metrics showed positive trends, with comparable store sales growth across various product categories, particularly in front-end/shocks, batteries, and brakes. The company reported a gross profit of $106.9 million, representing 35.5% of sales, a decrease from 37.2% in the prior year, attributed to rising technician labor and material costs. The company’s total assets decreased to $1.61 billion from $1.64 billion, while total liabilities also fell to $1.00 billion from $1.02 billion.

Looking ahead, Monro anticipates continued challenges due to the impact of store closures and rising operational costs. The company expects to generate positive operating cash flow and plans to allocate capital towards upgrading facilities and systems, with projected capital expenditures between $25 million and $35 million for fiscal 2026. The management remains focused on improving financial performance through strategic initiatives, including enhancing customer experience and operational efficiency.