Monro MNRO Q1 2026 Earnings Preview Downside Looms with Store Closures Impact

Forward-Looking Analysis
Monro is expected to report its Q1 2026 earnings next week, with forecasts indicating a continued challenging environment. Analysts predict Monro's revenue growth at 1% per annum, and earnings per share (EPS) are anticipated to grow by 24.2% annually. However, given recent fiscal 2025 results, including a net loss and decreased sales, the outlook may be cautious. The company's plan to close 145 underperforming stores could further impact results. Monro's overall earnings growth is projected at 25.8%, yet the recent decline in consumer demand, particularly among low- to middle-income brackets, poses risks. Analysts are closely monitoring Monro's strategic evaluations and cost-control efforts to mitigate adverse effects. The upcoming earnings call will provide more clarity on Monro's business adjustments and their expected impact on financial performance.

Historical Performance Review
In Q4 2025, Monro reported revenue of $294.99 million, a decrease from previous quarters. The company faced a net loss of $21.27 million, resulting in a negative EPS of $0.71. Gross profit amounted to $97.28 million, reflecting challenges in maintaining profitability amid declining sales figures.

Additional News
Monro announced plans to close 145 underperforming stores as part of its strategic reevaluation of its retail portfolio. This decision follows a full fiscal year net loss, attributed to weaker consumer demand. The closures are targeted for completion during the current fiscal year. Despite these challenges, Monro continues to forecast growth in earnings and revenue, albeit at a modest pace. The company has scheduled its Q1 2026 earnings report for July 30, 2025, which will include a conference call to discuss performance and future strategies. Investors await further details on Monro's operational adjustments and potential impacts on its financial trajectory.

Summary & Outlook
Monro faces a challenging financial landscape, marked by declining revenues and a net loss in fiscal 2025. Store closures are a significant risk factor affecting future performance. Despite projections of growth in earnings and EPS, the weak consumer demand and strategic portfolio changes indicate potential downside risks. The company's ability to navigate these challenges will be crucial. While Monro's revenue growth is forecasted at 1% annually, its overall financial health remains under pressure. The outlook remains cautious, with investors watching strategic measures closely as Monro adapts to shifting market conditions.