What were the key takeaways from Monro’s earnings call?

Did Monro beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Monro next quarter?

What does Monro do and what are its main business segments?

What guidance did Monro's management provide for the next earnings period?

What factors drove the changes in Monro's revenue and profit?

What is Monro's latest dividend and current dividend yield?

What were the key takeaways from Monro's earnings call?

- **Positive Comp Momentum**: 3 consecutive quarters of positive comps, Q2 at +1.1% despite September softness.
- **Gross Margin Expansion**: 40bps improvement to 35.7%, driven by cost control and digital marketing ROI.
- **Digital Transformation**: 600 stores with refined targeting show outperformance; full rollout by November.
- **Tariff Resilience**: Balanced price adjustments maintain margins; FY26 gross margin expected flat vs. 2025.
- **Dividend Confidence**: Strong cash flow ($30M H1) supports dividend and growth initiatives.
- **Customer Focus**: High-value customers generate 3x profit; targeted marketing driving incremental sales.


**【CEO Summary Section】**
- **Four Key Focus Areas**: Driving profitable customer acquisition, improving store experience, merchandising productivity, and real estate disposition.
- **Three Consecutive Quarters of Positive Comps**: Comparable store sales grew 1.1% in Q2, with July (+2%), August (+3%), and September (-2%) comps.
- **Gross Margin Expansion**: 40 basis points to 35.7%, driven by lower occupancy and material costs, offset by wage inflation.
- **Digital Marketing Success**: 600 stores with refined targeting show outperformance in traffic, sales, and gross profit. Expansion to all stores by early November.
- **Store Optimization**: Closure of 145 underperforming stores reduced sales by $45M annually but improved profitability. Real estate disposition generated $5.5M in Q2.

**【CFO Financial Commentary】**
- **Sales and Earnings**: Q2 sales $288.9M (-4.1% YoY), adjusted EPS $0.21 (+23.5% YoY). Operating income $12.8M (4.4% of sales).
- **Gross Margin Breakdown**: 70bps from occupancy cost reduction, 50bps from material cost efficiency, offset by 80bps wage inflation.
- **Cash Flow Strength**: $30M cash from operations in H1, net debt $50M, $410M credit facility availability.
- **Tariff Management**: Balanced cost and price adjustments to maintain margins, monitoring mix shifts and deferrals.

**【Q&A Highlights】**
- **Comp Drivers**: Price (+mid-single digits) offset traffic (-mid-single digits), net +1% comp. Digital marketing ROI >1x gross margin.
- **Tariff Outlook**: Expect continued cost inflation but offset by operational improvements. Fall promotions accelerated inventory sellout.
- **Dividend Safety**: Strong cash flow supports dividend and capital allocation priorities. FY26 adjusted EPS growth expected despite macro softness.
- **Customer Segmentation**: High-value customers generate 3x more profit. Targeted marketing and CRM initiatives driving engagement.
- **Store Execution**: Call center rollout to all stores by early November, freeing managers for in-store activities.


Monro, Inc. (MNRO) Q2 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

MNRO

MNRO fundamentals

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