Monro (MNRO) Piper Sandler Growth Frontiers Conference summary

Customer trends and behavior

• Value-conscious, low to middle-income consumers are deferring non-urgent services and trading down to lower-priced tire options due to financial pressures.

• Service deferrals and trade-downs are most evident in the tire category, with increased selection of lower-tier tires.

• Consumers are prioritizing essential maintenance but may delay recommended safety-related work.

Sales performance and company initiatives

• Same-store sales showed sequential improvement: down 13% in April, 11% in May, and 5% in June.

• Aggressive tire promotions, supported by manufacturers, helped maintain share in higher-tier tires and preserve margins.

• Promotions provided consumers with better value and brand-name tires with warranties.

Gross margin and productivity

• Gross margin expansion was driven by a 240 basis point improvement in technician productivity and pay as a percentage of sales.

• Technician training reduced time to full productivity from 90 days to three weeks.

• Material margin improved by 100 basis points, led by better field execution and disciplined discounting.

• Margin expansion potential remains if top-line growth returns, leveraging fixed occupancy costs.