Monro Posts Quarterly Per-Share Loss and Lower Sales in Fiscal Second Quarter 2027

Key Facts

Monro reported results for the second quarter of fiscal 2027, ended September 26, 2026, posting a net loss of $1.611 million after net income of $5.665 million in the same period a year earlier. Diluted earnings per share fell to a loss of $0.05, compared with earnings of $0.18 a year ago. Revenue came in at $283.64 million, below the analyst consensus of $285.06 million, according to Investing.com. The company also reported a loss per share of $0.01, versus analysts' estimate of earnings of $0.05, a negative difference of $0.06 per share. The results show lower earnings and revenue in the second fiscal quarter, with the year-over-year comparison referring to fiscal 2026, not calendar 2026.

Quarterly sales fell 1.8% to $283.6 million from $288.9 million a year earlier, and the company said the decline came entirely from a 1.8% drop in comparable sales at continuing stores. Management attributed the weakness in comparable sales to lower customer traffic in stores, consumers continuing to defer spending decisions on higher-priced purchases, and some customers shifting to lower-cost tires. Management said the operating environment continued to challenge the automotive aftermarket. In contrast, ConfiDrive inspections helped lift average repair orders, while gains in batteries and maintenance also provided support, according to the company's filing. This puts the revenue decline in the context of weaker demand in some categories, while other activities continued to support sales.

The sales decline was accompanied by a much steeper drop in operating income, which contracted to $2.591 million from $12.750 million in the same quarter a year earlier, a 79.7% year-over-year decrease. At the same time, operating, selling, general and administrative expenses rose 7.7% to $97.358 million. The contrast between a 1.8% decline in sales and an increase in those expenses shows that quarterly pressure was not limited to lower revenue, but also included higher spending in the expense category cited in the company's filing. The quarter ended with a net loss after Monro reported net income in the year-earlier period, while diluted earnings per share turned from $0.18 to a loss of $0.05. The company had not provided financial guidance for fiscal 2027 when it released the results.

Weak performance extended into the first half of fiscal 2027: sales fell 3.3% in the first six months to $570.8 million from $589.9 million in the same period. Comparable sales declined 1.7%, after rising 3.4% in the first half of the previous fiscal year. For full fiscal 2026, Monro posted diluted earnings per share of $0.03, with comparable sales up 1.4% despite a 3.2% decline in total sales. These figures place the latest quarterly results within a broader period of lower total sales, following limited growth in comparable sales in the previous fiscal year. The comparison also shows that the direction of comparable sales in the first half of 2027 reversed from the same period a year earlier.

Monro said its District Manager Toolkit had been deployed across most of its store network, and that a new operating efficiency team continued to provide field training and coaching. Management added that it had seen early improvement in net results at a group of locations, describing the improvement as meaningful. On financing, the company announced that it entered into a new credit agreement with Ares Capital on October 23, replacing the prior facility. Cash and cash equivalents totaled $27.3 million, while $60.0 million was available under the new facilities as of October 24. The company had announced new secured credit facilities totaling $375.0 million, comprising a $250.0 million term loan and a $125.0 million revolving facility.

EL7 data showed the stock closed at $14.16 on October 27 and then at $14.30 on October 28. In its earnings report, Investing.com said the closing price was $14.30, which does not establish the percentage decline cited in the previous draft. Management is scheduled to discuss its fiscal 2027 outlook during an earnings conference call on October 29, 2026, at 8:30 a.m. U.S. Eastern Time. Monro had said it was not providing financial guidance for fiscal 2027 when it released the results, but would present its outlook during the call. That will be the first scheduled opportunity in the filing for management to present its view of the remainder of the fiscal period.