Monro, Inc. announced its financial results for the second quarter ended September 26, 2026. The company reported sales of $283.6 million for the fiscal 2027 quarter, a decrease of 1.8% compared to the same period in the prior year. This decline was driven entirely by a 1.8% drop in comparable store sales from continuing locations.
Despite the sales decrease, the company noted specific category performance. Comparable store sales increased 8% for batteries and 3% for maintenance services. Conversely, sales decreased 2% for alignments, 4% for tires and brakes, and 5% for front/end shocks.
On the cost side, gross margin decreased by 50 basis points compared to the prior year. Total operating expenses rose to $97.4 million, or 34.3% of sales, compared to $90.4 million, or 31.3% of sales in the prior year. The increase was attributed to higher store closing costs, front shop labor, marketing expenses, and litigation reserves, partially offset by savings from consultants and the closure of underperforming stores.
As a result, operating income for the quarter was $2.6 million, or 0.9% of sales, down from $12.8 million, or 4.4% of sales in the prior year. The company reported a net loss of $1.6 million, or $0.05 per diluted share, compared to net income of $5.7 million, or $0.18 per diluted share, in the prior year. Adjusted operating income was $4.4 million, or 1.6% of sales, and adjusted diluted loss per share was $0.01.
During the quarter, Monro closed one store, ending the period with 1,114 company-operated locations and 47 franchised stores. The company also paid a cash dividend of $0.28 per share on September 8, 2026.
In a separate development, Monro entered into a new credit agreement with Ares Capital Corporation on October 23, 2026. The agreement provides $375.0 million in senior secured credit facilities, consisting of a $250.0 million term loan and a $125.0 million revolving credit facility, both maturing on October 23, 2030. The company stated it has $27.3 million in cash and equivalents and $60.0 million available under the new facilities as of October 24, 2026.
Monro is not providing fiscal 2027 financial guidance at this time but will discuss expectations during an earnings conference call on October 29, 2026, at 8:30 a.m. Eastern Time.
