Q2 2025 Monro Inc Earnings Call Transcript
Key Points
- Monro Inc (MNRO) achieved a sequential improvement in year-over-year comparable store sales percentage change from the first quarter.
- The tire category exited the quarter with year-over-year growth, leveraging manufacturer-funded promotions.
- There was year-over-year growth in both battery units and sales dollars in the quarter.
- The company improved its attachment rate for alignment, resulting in year-over-year growth in both alignment units and sales dollars.
- Monro Inc (MNRO) maintained a strong financial position with a net bank debt to EBITDA ratio of 0.3 times.
- Comparable store sales decreased by 5.8% year-over-year, leading to a 6.4% decline in total sales.
- Gross margin decreased by 40 basis points due to mix within tires and higher fixed occupancy costs.
- Operating income for the second quarter declined to $13.2 million, or 4.4% of sales.
- Net income decreased to $5.6 million compared to $12.9 million in the same period last year.
- The company faced pressure on material margins due to a trade-down dynamic in tire purchases.
Good morning, ladies and gentlemen and welcome to Monro Inc earnings conference call for the second quarter of fiscal 2025. At this time, all participants are in an instant only mode later, we will conduct a question and answer session and instructions will follow at that time.
(operator instruction)
And as a reminder, this conference call is being recorded and may not be reproduced in whole or in part without permission from the Felix Veksler senior Director of Investor Relations at Monro. Please go ahead.
Thank you. Hello everyone and thank you for joining us on this morning's call before we get started. Please note that as part of this call, we will be referencing a presentation that is available on the investors section of our website at corporate.Monro.com/investors.
If I could draw your attention to the safe harbour statement on slide 2, I'd like to remind participants that our presentation includes some forward-looking statements about Monro's future performance.
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