NASDAQ$MNRO

Monro Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Monro's Q4 2023 financial results were announced, revealing a decrease in sales due to the divestiture of wholesale tire and distribution assets, while comparable store sales increased.

Monro, Inc. reported a decrease in sales for the fourth quarter of fiscal year 2023, primarily due to the divestiture of its Wholesale tire and distribution assets. However, comparable store sales increased, driven by strong performance in small or underperforming stores. The company's profitability fell short of expectations due to labor cost pressures and customer trade-downs. Monro is implementing pricing actions and cost reductions to improve gross margins.

  • Sales decreased to $310.8 million due to the divestiture of Wholesale tire and distribution assets.
  • Comparable store sales increased 4.5%, driven by a 7% increase in small or underperforming stores.
  • Diluted EPS was $.01, and adjusted diluted EPS was $.08.
  • The company approved a first quarter fiscal 2024 cash dividend of $.28 per share.

Headline financials

Total Revenue

$311M

Previous: $328M-5.2%
EPS (adj)

$0.08

Previous: $0.20-60.0%
Gross margin

33.4%

No prior period
Capital Expenditures

$10.5M

Previous: $10.4M+0.7%
Free Cash Flow

$33.4M

Previous: $36.1M-7.7%
Net Income

$400K

Previous: $8.62M-95.4%
Operating Income

$6.2M

Previous: -$8.77M+170.7%
Gross Profit

$104M

Previous: $105M-0.8%
Cash & Equivalents

$4.88M

Previous: $7.95M-38.6%
Total Assets

$1.78B

Previous: $1.87B-5.1%
Stock-Based Comp

$1.45M

Previous: $1.2M+21.0%

Revenue & EPS history

Monro · Revenue · Quarterly

$311M

Q4 2023-5.2%vs Q4 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

For the first quarter of fiscal 2024, Monro expects total company sales to be in the range of $330 million to $335 million, with comparable store sales growth of 2% to 3%. The company anticipates a gross margin rate in the range of 35.8% to 36.2% and a diluted EPS range of $.36 to $.42.

Tailwinds

  • Total company sales are expected to be in the range of $330 million to $335 million.
  • Comparable store sales growth is projected to be in the range of 2% to 3%.
  • Preliminary comparable store sales are up approximately 2% quarter-to-date.
  • Gross margin rate is expected to be in the range of 35.8% to 36.2%.
  • Diluted EPS is anticipated to be in the range of $.36 to $.42.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-1.1%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.1%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+31.4%

Q4 2025

Best reaction

-20.3%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+0.2%-7.0%+7.5%
Q2 2026-16.6%-16.8%+3.5%
Q1 2026-20.3%-11.6%+1.6%
Q4 2025+31.4%+22.2%+14.9%
Q3 2025-7.7%-15.6%-19.1%
Q2 2025+2.3%+3.2%+5.0%
Q1 2025+11.4%+4.5%+4.0%
Q4 2024-9.4%-8.6%-11.0%
Q3 2024+5.3%+6.9%+8.2%
Q2 2024+4.3%+0.9%+18.4%
Q1 2024-6.4%-6.5%-15.1%
Q4 2023-8.8%-11.4%-19.3%
Q3 2023+11.9%+8.3%+12.3%
Q2 2023-6.3%-1.7%-5.0%
Q1 2023+8.7%+10.9%+3.8%
Q4 2022-11.1%-1.0%-8.4%
Q3 2022-12.8%-14.1%-18.8%
Q2 2022+6.2%+7.5%+0.1%
Q1 2022-6.7%-9.5%-12.3%
Q4 2021-3.2%-5.1%-7.4%
Q3 2021+2.1%+8.0%+9.2%
Q2 2021-1.6%-4.3%+10.5%
Q1 2021-5.8%-4.4%-23.6%
Q4 2020-11.2%-11.8%-13.6%
Q3 2020-10.8%-12.4%-20.2%
Q2 2020-14.9%-12.4%-9.4%
Q1 2020+0.7%+3.5%-7.0%
Q4 2019+4.7%+2.3%+8.6%
Q3 2019+1.0%+6.1%+7.7%
Q2 2019+15.2%+14.1%+20.2%
Q1 2019-4.9%+0.3%+4.8%
Q4 2018-7.0%-1.9%+8.0%
Q3 2018-7.1%-9.7%-16.2%
Q2 2018-3.6%-1.2%-3.4%
Q1 2018+14.0%+9.4%+4.5%
Q4 2017+0.7%-2.0%-8.3%
Q3 2017-8.0%-8.8%-4.8%
Q2 2017-3.5%-6.1%-3.4%
Q1 2017-1.2%-3.0%-9.8%
Q4 2016-6.4%
Q3 2016+2.9%
Q2 2016+4.0%
Q1 2016-1.4%
Q4 2015-4.7%
Q3 2015-3.9%
Q2 2015-3.6%
Q1 2015+0.1%
Q4 2014+6.6%
Q3 2014+0.3%
Q2 2014-1.0%
Q1 2014+1.0%
Q4 2013+10.1%
Q3 2013-4.6%
Q2 2013+1.4%
Q1 2013+0.2%
Q4 2010-1.9%
Q4 2012-1.9%
Q3 2012+4.2%
Q3 2011+4.2%
Q2 2012-1.2%
Q4 2011-1.2%
Q1 2012-2.3%
Q2 2011-2.3%
Q1 2011-2.3%

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