Monro (MNRO) Q4 2026 earnings summary

Executive summary

• Fourth quarter and full year fiscal 2026 results reflect a challenging operating environment, with sales down 7.2% year-over-year to $273.8 million, mainly due to weak tire demand and the closure of 145 underperforming stores; comparable store sales declined 2.4%.

• Gross margin expanded by 90 basis points year-over-year in Q4, reaching 33.9%, driven by lower technician labor costs as a percentage of sales.

• Net loss for Q4 was $6.6 million, a significant improvement from a $21.3 million net loss in the prior year period; diluted loss per share was $0.23.

• Strategic review underway, considering options such as asset sales, refinancing, acquisitions, or sale of the company.

• Focused on profitable customer acquisition, merchandising productivity, customer experience, and real estate optimization.

Financial highlights

• Q4 FY26 sales were $273.8 million, down 7.2% year-over-year; same store sales declined 2.4%.

• Gross margin expanded 90 basis points to 33.9% year-over-year, driven by lower technician labor costs.

• Q4 operating loss was $5.2 million (-1.9% of sales), improved from $23.8 million loss (-8.1%) last year.

• Adjusted Q4 operating loss was $2.6 million (-0.9% of sales), versus adjusted operating income of $1.4 million (0.5%) last year.

• Generated $70 million in cash from operations in fiscal 2026.

Outlook and guidance

• Expects comparable store sales growth in fiscal 2027, driven by ongoing performance initiatives.

• Store optimization plan anticipated to reduce total sales by ~$9 million in Q1 fiscal 2027.

• Gross margin for fiscal 2027 expected to be consistent with 2026; higher SG&A anticipated due to increased marketing investment.

• Sufficient cash flow and liquidity expected to fund capital allocation priorities.

• No formal fiscal 2027 financial guidance provided; management to discuss expectations during the earnings call.