Monro Q1 sales fall 4.6%, but slightly beat estimates

Overview

• U.S. auto repair chain's fiscal Q1 sales fell 4.6% but slightly beat analyst expectations

• Adjusted EPS for fiscal Q1 missed analyst expectations, turning negative year-over-year

Outlook

• Monro is not providing fiscal 2027 financial guidance at this time

• Company says operating environment remains challenging with lower store traffic and deferred spending

• Monro expects operational progress to support improved performance as consumer spending stabilizes

Result Drivers

• STORE CLOSURES - Co said sales fell mainly due to $9 mln in lost sales from closure of 145 underperforming stores in prior year

• LOWER TRAFFIC DEFERRED SPENDING - Co said comparable store sales declined 1.7% as customers deferred higher-ticket spending in tires and brakes and traded down to lower-cost alternatives

• SERVICE CATEGORY MIX - Co said growth in batteries and alignments offset declines in maintenance services and brakes

Company press release: ID:nBw9ZwzpHa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts service retailers peer group is "buy"

• Wall Street's median 12-month price target for Monro Inc is $18.75, about 9% above its July 28 closing price of $17.20

• The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 24 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)