Monro Inc (MNRO, Financial), a leading provider of automotive undercar repair and tire services, announced its second quarter financial results for the fiscal year ending March 30, 2024, on October 26, 2023. The company reported a slight decrease in sales and net income compared to the same period in the previous fiscal year.
Financial Performance
Monro's sales for Q2 fiscal 2024 decreased by 2.3% to $322.1 million, compared to $329.8 million for the same period in fiscal 2023. The company attributed this decrease to consumers deferring tire purchases due to persistent inflationary pressures. Despite this, gross margin increased by 30 basis points compared to the prior year period, primarily due to lower material costs as a percentage of sales.
Net income for Q2 fiscal 2024 was $12.9 million, compared to $13.1 million in the same period of the prior year. Diluted earnings per share for the second quarter of fiscal 2024 was $.40, the same as in the second quarter of fiscal 2023.
Company Outlook
Despite the challenges, Monro's President and Chief Executive Officer, Mike Broderick, expressed confidence in the company's ability to navigate the current economic environment. He stated,
Despite a tough macro-economic environment, the resiliency of our business model allowed us to expand gross margin and maintain our year-over-year profitability even on lower tire sales volumes."
Strong Financial Position
During the first half of fiscal 2024, Monro generated operating cash flow of approximately $98 million. As of September 23, 2023, the company had cash and cash equivalents of approximately $9 million and availability on its revolving credit facility of approximately $515 million.
Share Repurchases
The company maintains a share repurchase program authorizing the company to repurchase up to $150 million of its common stock, with approximately $53 million remaining for future repurchases.
Financial Highlights
Monro's financial highlights for Q2 fiscal 2024 include a gross profit of $114.973 million, operating income of $22.355 million, and net income of $12.872 million. The company ended the quarter with 1,298 company-operated stores and 77 franchised locations.
Explore the complete 8-K earnings release (here) from Monro Inc for further details.
