Monro Stock Plummets After Q4 Earnings: The Details

Monro, Inc. MNRO shares slid Thursday after reporting lackluster results in the fourth quarter of FY23.
The company registered a sales decline of 5.2% year-on-year in Q4 to $310.84 million, missing the consensus of $313.75 million.
Adjusted EPS of $0.08 missed the analyst consensus of $0.31.
The sales decline was due to the Company's Wholesale tire and distribution assets divestiture in the first quarter of fiscal 2023.
Comparable store sales increased by 4.5% versus last year. Sales from new stores increased by $2 million, primarily from recent acquisitions.
The gross profit inched lower by 0.8% Y/Y to $103.80 million. The margin jumped 150 basis points to 33.4%.
The company held $5 million in cash and equivalents as of March 31, 2023.
"We will continue to drive our business toward consistently delivering mid-single-digit comparable sales growth with a commitment to a balanced approach between tire and service categories that will allow us to leverage our cost structure to deliver enhanced profitability," said Mike Broderick, President and Chief Executive Officer.
The company expects to restore its gross margins to pre-COVID levels with double-digit operating margins over the longer term.
Dividend: The company has approved a cash dividend for the first quarter of fiscal year 2024 of $0.28 per share. The cash dividend is payable on June 19, 2023.
Outlook: For 1Q24, revenues are expected to be $330 million to $335, versus the consensus of $341.40 million.
The company sees EPS of $0.36 to $0.42 versus the $0.40 consensus.
The gross margin rate is forecasted in the range of 35.8% to 36.2%
Price Action: MNRO shares are trading lower by 11.10% at $43.52 on the last check Thursday.

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