Monro Shares Drop On Q2 Earnings Miss

Monro Inc MNRO reported a second-quarter FY23 sales decline of 5.1% year-on-year to $329.82 million, missing the consensus of $345.58 million.
The sales decline was due to the divestiture of the company's Wholesale tire and distribution assets in Q1 FY23.
Comparable store sales increased 1.3% versus last year.
The gross profit declined 10.7% Y/Y to $116.7 million. The margin decreased 220 basis points to 35.4%, primarily due to a higher mix of tire sales in the company's retail locations, customer trade down to opening price point tires, and parts inflation.
The operating margin contracted from 9.9% to 7.1%, and operating income for the quarter fell 31.9% to $23.5 million.
The company held $9.8 million in cash and equivalents as of September 24, 2022.
Adjusted EPS of $0.43 missed the analyst consensus of $0.45.
Monro is not providing fiscal 2023 financial guidance at this time.
Price Action: MNRO shares are trading lower by 7.04% at $45.18 on the last check Wednesday.

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