Monro, Inc. reported a challenging fiscal year ending March 29, 2025, with a net loss of $5.2 million, compared to a net income of $37.6 million in the previous year. The company's sales decreased by 6.4% to $1.2 billion, primarily driven by a 5.3% decline in comparable store sales, attributed to lower store traffic and fewer selling days. Operating income fell sharply by 82.4% to $12.6 million, significantly impacted by increased store impairment charges totaling $24.4 million. The diluted loss per share was reported at $0.22, a stark contrast to the earnings of $1.18 per share in the prior year.
In response to underperformance, Monro's Board of Directors approved a plan to close 145 underperforming stores in the first quarter of fiscal 2026, which is expected to incur costs between $10 million and $15 million. This decision follows a strategic evaluation of market segmentation and demographic data, aiming to enhance profitability by reducing fixed costs associated with these locations. The company also recorded $20.8 million in store impairment costs related to these closures during fiscal 2025.
Operationally, Monro serviced approximately 4.2 million vehicles across its 1,260 retail locations as of March 29, 2025. The company has not completed any acquisitions in fiscal 2025, but it has historically added 69 locations through five acquisitions over the past five years, contributing approximately $103 million in annualized revenue. The company continues to focus on enhancing customer experience and operational efficiency, with plans to invest in technology and training for its workforce.
Monro's financial position remains under scrutiny, particularly regarding its credit facility, which was amended on May 23, 2025, to provide additional flexibility in financial covenants. As of the end of fiscal 2025, the company had $61.3 million outstanding under its credit facility, with $499.9 million available for future borrowing. The company anticipates that ongoing economic conditions, including inflation and labor market constraints, may continue to impact its performance in the upcoming fiscal year.
About MONRO, INC.
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