Monro, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a decline in sales and profitability compared to the previous year. For the three months ended September 27, 2025, the company generated sales of $288.9 million, a decrease of 4.1% from $301.4 million in the same period last year. Gross profit also fell to $103.1 million, down 3.1% from $106.4 million, while operating income decreased to $12.8 million from $13.2 million. The net income for the quarter was $5.7 million, slightly up from $5.6 million in the prior year, resulting in diluted earnings per share of $0.18, unchanged from the previous year.
The company's financial performance reflects significant changes from the prior fiscal period, particularly due to the impact of store closures. Monro closed 145 underperforming stores as part of a strategic Store Closure Plan, which contributed to a decrease in sales from closed locations. However, comparable store sales increased by 1.1% during the quarter, indicating some resilience in existing operations. The overall decline in sales was partially offset by higher comparable store sales, which were driven by improved performance in certain product categories, including front end/shocks and brakes.
Operationally, Monro's total number of company-operated retail stores increased slightly to 1,116 as of September 27, 2025, from 1,115 at the end of the previous quarter. The company also reported a working capital deficit of $268.4 million, an increase from $246.9 million, primarily due to extended payment terms negotiated with suppliers. Monro's employee headcount remained stable, with no significant changes reported in staffing levels.
Looking ahead, Monro's management expressed cautious optimism regarding future performance, emphasizing the importance of ongoing operational improvements and strategic initiatives. The company is focused on enhancing customer experience and driving profitable customer acquisition through its Operational Improvement Plan, which includes consulting services from AlixPartners. Despite the challenges posed by store closures and market conditions, Monro aims to leverage its existing store base and improve profitability through better inventory management and marketing strategies. The company expects to continue generating positive operating cash flow and plans to allocate capital towards growth initiatives while maintaining its dividend program.
About MONRO, INC.
Monro, Inc. operates a nationwide network of retail tire and automotive repair stores in the U.S., offering tire sales, vehicle maintenance, and repair services for passenger cars and light trucks. The company emphasizes convenience, value, and customer service across multiple brands, leveraging scale, strategic acquisitions, and a broad supplier network to serve both retail and commercial customers in a highly competitive industry.
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