Monro Q2 sales fall on lower store traffic

Overview

• US auto repair and tire provider's fiscal Q2 sales fell 1.8%, slightly missing analyst expectations

• Adjusted EPS for fiscal Q2 was a loss, missing consensus estimates

• Company cited lower store traffic and deferred high-ticket purchases for sales decline

Outlook

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

Result Drivers

• LOWER STORE TRAFFIC - Co said sales decline was driven by fewer customers visiting stores

• CONSUMER DEFERRED SPENDING - Co said customers deferred higher-ticket spending and traded down to lower-cost tire options

• PROMOTIONS IMPACT - Co said self-funded promotions in brakes helped unit growth but contributed to sales decline

Company press release:

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 $16.00, about 11.9% above its October 28 closing price of $14.30

• The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 48 three months ago

Reuters Recommended Reads

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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.)