Monro has released its fiscal 2025 earnings, reporting a net loss and plans to close underperforming stores. The company evaluated its store portfolio and identified 145 locations for closure, targeting completion during the first quarter of fiscal 2026.
Fourth Quarter Results and Monro Fiscal 2025 Earnings Breakdown
Monro reported a 4.9% sales decline for the fourth quarter of fiscal 2025, dropping to $295 million from $310.1 million in the same quarter of fiscal 2024. The quarter had 91 selling days versus 97 the prior year, contributing to an $18.9 million sales reduction. Comparable store sales rose 2.8%. However, adjusting for fewer days, comparable store sales dropped 3.6%.
Category performance showed comparable store sales increases of 27% in front end/shocks, 25% in batteries, 2% in brakes, 2% in tires, and 1% in maintenance. Alignments decreased 1% year over year.
Higher material and technician labor costs reduced the gross margin by 250 basis points. Monro recorded $121.1 million in operating expenses for the quarter, or 41.1% of sales, up from $99.7 million or 32.2% of sales in Q4 2024.
Monro posted a $23.8 million operating loss, equal to -8.1% of sales, compared to $10.3 million in operating income (3.3% of sales) a year earlier.
Interest, Tax, and Net Performance
The company reduced interest expense to $4.4 million from $5 million in Q4 2024. It recorded a $6.8 million income tax benefit, or a 24.3% effective tax rate, versus a $2 million tax provision and 35% rate the prior year.
Monro’s net loss for Q4 2025 totaled $21.3 million. That reverses a $3.7 million net income from the same period in 2024. Diluted loss per share hit $0.72, versus earnings per share of $0.12 last year. Adjusted diluted loss per share was $0.09, compared to $0.21 in Q4 2024.
During Q4, Monro closed three stores and ended the quarter with 1,260 company-operated locations and 48 franchised stores.
Full Year Monro Fiscal 2025 Earnings Summary
Monro’s fiscal 2025 earnings show a 6.4% sales decrease to $1.195 billion, down from $1.277 billion in fiscal 2024. The company cited consumer deferral and trade-down activity in tire and service categories as key factors.
Gross margin fell slightly to 34.9% from 35.4%. Operating expenses rose to $405.1 million, or 33.9% of sales, compared to $380.7 million (29.8%) last year. Operating income fell to 1.1% of sales from 5.6%.
Monro recorded a $5.2 million net loss for fiscal 2025, equaling $0.22 per diluted share, down from $37.6 million net income and $1.18 EPS in fiscal 2024. Adjusted diluted earnings per share dropped to $0.48 from $1.33.
Dividends and Financial Position
Monro generated $132 million in operating cash flow during fiscal 2025. As of March 29, the company reported $508.7 million available under its credit facility and held $20.8 million in cash.
On March 11, Monro paid a $0.28 per share dividend for Q4. The Board approved a $0.28 dividend for Q1 fiscal 2026, payable June 17, 2025, to shareholders of record on June 3.
Monro has not issued full-year guidance but will discuss fiscal 2026 expectations during its upcoming earnings call.
