Earnings release
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295 Woodcliff Drive, Suite 202, Fairport, New York 14450 CONTACT: Investors and Media: Felix Veksler Vice President, Investor Relations ir@monro.com FOR IMMEDIATE RELEASE MONRO, INC. ANNOUNCES FIRST QUARTER FISCAL 2027 FINANCIAL RESULTS FAIRPORT, N.Y. – July 29, 2026 – Monro, Inc. (Nasdaq: MNRO), a leading provider of automotive repair and tire services, today announced financial results for its first quarter ended June 27, 2026. First Quarter Results Sales for the first quarter of the fiscal year ending March 27, 2027 (“fiscal 2027”) decreased 4.6% to $287.1 million, as compared to sales of $301.0 million for the first quarter of the fiscal year ended March 28, 2026 (“fiscal 2026”). This was primarily driven by a reduction in sales of $9.0 million from the closure of 145 underperforming stores in the first quarter of fiscal 2026, as well as a 1.7% decrease in comparable store sales from continuing store locations. Comparable store sales increased 8% for batteries and 1% for front end/shocks and alignments compared to the prior year period. Comparable store sales decreased 1% for tires and brakes and 5% for maintenance services compared to the prior year period. Please refer to the “Comparable Store Sales” section below for a discussion of how the Company defines comparable store sales. Gross margin decreased 50 basis points compared to the prior year period, primarily from higher occupancy costs as a percentage of sales, which were partially offset by lower technician labor costs as a percentage of sales. Total operating expenses for the first quarter of fiscal 2027 were $96.7 million, or 33.7% of sales, as compared to $113.0 million, or 37.5% of sales in the prior year period. The decrease was primarily driven by $17.8 million of lower store closing costs in the first quarter of fiscal 2027, $4.1 million of lower costs from the closure of 145 underperforming stores in the first quarter of fiscal 2026, and $3.7 million of lower costs incurred in connection with consultants related to the Company’s operational improvement plan. These were partially offset by $4.9 million of increased marketing
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costs to support the Company’s topline and $4.6 million of increased costs at continuing locations, primarily front shop labor. Operating income for the first quarter of fiscal 2027 was $3.7 million, or 1.3% of sales, as compared to an operating loss of $6.1 million, or -2.0% of sales in the prior year period . Adjusted operating income, a non-GAAP measure, for the first quarter of fiscal 2027 was $2.2 million, or 0.8% of sales, as compared to adjusted operating income of $14.0 million, or 4.7% of sales in the prior year period. Please refer to the reconciliation of adjusted operating income in the table below for details regarding excluded items in the first quarters of fiscal 2027 and 2026. Please refer to the “Non-GAAP Financial Measures” section below for a discussion of this non-GAAP measure. Interest expense was $4.6 million for the first quarter of fiscal 2027, as compared to $4.8 million for the first quarter of fiscal 2026, principally due to lower weighted average debt, which was driven by a decrease in finance lease obligations related to the Company’s store locations. Income tax expense in the first quarter of fiscal 202 7 was $0.2 million, or an effective tax rate of -7.7%, compared to an income tax benefit of $2.7 million, or an effective tax rate of 24.8% in the prior year period. The year-over-year difference in effective tax rate is primarily related to a decrease in unrecognized tax benefits as well as the impact from other adjustments, none of which are significant, on the change in pre-tax loss. Net loss for the first quarter of fiscal 2027 was $2.1 million, as compared to a net loss of $8.1 million in the same period of the prior year. Diluted loss per share for the first quarter of fiscal 202 7 was $.08. This compares to diluted loss per share of $.28 in the first quarter of fiscal 202 6. Adjusted diluted loss per share, a non -GAAP measure, for th e first quarter of fiscal 202 7 was $.09. This compares to adjusted diluted earnings per share of $. 22 in the first quarter of fiscal 202 6. Please refer to the reconciliation of adjusted net (loss) income and adjusted diluted (loss) earnings per share in the tables below for details regarding excluded items in the first quarters of fiscal 2027 and 2026. Please refer to the “Non -GAAP Financial Measures” section below for a discussion of these non- GAAP measures. Monro ended the first quarter with 1,115 company-operated stores and 47 franchised locations.
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“Our first quarter comparable store sales declined 1.7%, reflecting an operating environment, which continued to challenge the full-service auto aftermarket. This was driven by lower store traffic as well as consumers that continued to defer higher -ticket spending decisions in tires and brakes and traded-down to lower-cost alternatives in our tire category. However, and importantly, we were able to hold our tire unit volumes flat, and we believe this allowed us to take market share, both in our tier one tires as well as in our overall tire category in the quarter. We believe that this is a direct result of our promotional effectiveness and the timely expansion of our tier four tire offerings, which allowed us to meet the needs of our customers across the price spectrum . The effectiveness of our ConfiDrive courtesy inspection process helped us drive average repair order growth in the quarter. This was driven by meaningful improvements in certain of our higher -margin service categories, including batteries, alignments, and front/end shocks. This performance reinforces that we continue to deliver genuine value to our full -service customers, even in a difficult spending environment. Importantly, we maintained our marketing investment during the quarter, despite the sales headwinds we faced”, said Peter Fitzsimmons, President and Chief Executive Officer. Fitzsimmons continued, “While we’re not satisfied with our results , we remain confident that the operational progress we’ve made is building a foundation for improved performance as consumer spending stabilizes.” Financial Position As of June 27, 2026, the Company had availability under its credit facility of $261.5 million and cash and equivalents of $9.5 million. First Quarter Fiscal 2027 Cash Dividend On June 16, 2026, the Company paid a cash dividend for the first quarter of fiscal 2027 of $.28 per share. Environmental, Social & Governance (ESG) Monro recently released its sixth annual ESG Report, which covers fiscal 2026. The report highlights the Company’s ESG initiatives, including ongoing commitments to operational excellence and responsible business practices as the foundation for driving growth, strengthening relationships, and delivering long -term value to stakeholders. The report is available on the Company’s corporate website at corporate.monro.com/esg/default.aspx.
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Company Expectations Monro is not providing fiscal 2027 financial guidance at this time but will provide perspective on its expectations for fiscal 2027 during its earnings conference call. Earnings Conference Call and Webcast The Company will host a conference call and audio webcast on July 29, 2026 at 8:30 a.m. Eastern Time. The conference call may be accessed by dialing 1-800-715-9871 and using the required access code of 4507272. A replay will be available approximately two hours after the recording through Wednesday, August 12, 2026 and can be accessed by dialing 1-800-770-2030 and using the required access code of 4507272. A replay can also be accessed via audio webcast at the Investors section of the Company’s website, located at corporate.monro.com/investors. About Monro, Inc. Monro, Inc. (NASDAQ: MNRO) is one of the nation’s leading automotive service and tire providers, delivering best-in-class auto care to communities across the country, from oil changes, tires and parts installation, to the most complex vehicle repairs. With a focus on sustainable growth, the Company generated approximately $1.2 billion in sales in fiscal 2026. Monro brings customers the professionalism and high-quality service they expect from a national retailer, with the convenience and trust of a neighborhood garage. Monro’s highly trained teammates and certified technicians bring together hands -on experience and state -of-the-art technology to diagnose and address automotive needs every day to get customers back on the road safely. For more information, please visit corporate.monro.com. Cautionary Note Regarding Forward-Looking Statements The statements contained in this press release that are not historical facts may contain statements of future expectations and other forward -looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1 995. Forward-looking statements can be identified by such words and phrases as “continue,” “expect,” “may,” “believe,” “focus,” “will,” “plan,” “should,” “estimate,” and other similar words or phrases. Forward -looking statements are subject to risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed. These factors include, but are not necessarily limited to uncertainty related to the financial and operational impact of the operational improvement plan, product demand, advances in automotive technologies including adoption of electric vehicle technology, our
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dependence on third parties for certain inventory, dependence on and competition within the primary markets in which the Company’s stores are located, the effect of general business or economic and geopolitical conditions on the Company’s business, including consumer spending levels, inflation, and unemployment, seasonality, our ability to generate sufficient cash flows from operations and service our debt obligations and comply with the terms of our credit agreement, changes in the U.S. trade environment, including the impact of tariffs on imported products, the impact of competitive services and pricing, product development, parts supply restraints or difficulties, the impact of weather trends and natural disasters, industry regulation, risks relating to leverage and debt service (including sensitivity to fluctuations in interest rates), continued availability of capital resources and financing, risks relating to protection of customer and employee personal data, risks relating to litigation, risks relating to integration of acquired businesses and other fac tors set forth elsewhere herein and in the Company’s Securities and Exchange Commission filings, including the Company’s annual report on Form 10-K for the fiscal year ended March 28, 2026 . Except as required by law, the Company does not undertake and specifically disclaims any obligation to update any forward - looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Non-GAAP Financial Measures In addition to reporting operating income (loss), ne t loss , and diluted loss per share, which are generally accepted accounting principles (“GAAP”) measures, this press release includes adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share, which are non-GAAP financial measure s. The Company has included reconciliation s from adjusted operating income, adjusted net (loss) income, and adjusted diluted (loss) earnings per share to their most directly comparable GAAP measure s, operating income (loss), net loss, and diluted loss per share. Management views these non-GAAP financial measure s as a way to better assess comparability between periods because management believes the non -GAAP financial measure s show the Company’s core business operations while excluding certain items that are not part of our core operations such as pension settlement expense, consulting costs related to the Company’s operational improvement plan, transition costs related to back-office optimization, write-off of debt issuance costs, costs related to shareholder matters, and store closing costs net of related gains on the sale of owned locations, lease assignments and early lease terminations. These non-GAAP financial measures are not intended to represent, and should not be considered more meaningful than, or as an alternative to, their most directly comparable GAAP measures.
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These non-GAAP financial measure s may be different from similarly titled non -GAAP financial measures used by other companies. Comparable Store Sales The Company defines comparable store sales as sales for locations that have been opened or owned at least one full fiscal year. The Company believes this period is generally required for new store sales levels to begin to normalize. Management uses compara ble store sales to assess the operating performance of the Company’s stores and believes the metric is useful to investors because the Company’s overall results are dependent upon the results of its stores. Source: Monro, Inc. MNRO-Fin ###
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MONRO, INC. Financial Highlights (Unaudited) (Dollars and share counts in thousands) Quarter Ended Fiscal June 2026 2025 % Change Sales $ 287,129 $ 301,035 (4.6)% Cost of sales, including occupancy costs 186,734 194,129 (3.8)% Gross profit 100,395 106,906 (6.1)% Operating, selling, general and administrative expenses 96,700 112,981 (14.4)% Operating income (loss) 3,695 (6,075) 160.8% Interest expense, net 4,635 4,784 (3.1)% Other expense (income), net 1,056 (158) 768.4% Loss before income taxes (1,996) (10,701) 81.3% Provision for (benefit from) income taxes 153 (2,651) 105.8% Net loss $ (2,149) $ (8,050) 73.3% Diluted loss per share $ (0.08) $ (0.28) 71.4% Weighted average number of diluted shares outstanding 30,145 29,967 Number of stores open (at end of quarter) 1,115 1,115
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MONRO, INC. Financial Highlights (Unaudited) (Dollars in thousands) June 27, 2026 March 28, 2026 Assets Cash and equivalents $ 9,526 $ 14,633 Inventory 156,225 155,270 Other current assets 65,980 66,738 Total current assets 231,731 236,641 Property and equipment, net 239,346 241,857 Finance lease and financing obligation assets, net 142,842 148,807 Operating lease assets, net 179,239 175,899 Other non-current assets 763,348 764,773 Total assets $ 1,556,506 $ 1,567,977 Liabilities and Shareholders’ Equity Current liabilities $ 472,873 $ 517,837 Long-term debt 108,435 60,000 Long-term finance leases and financing obligations 184,070 193,173 Long-term operating lease liabilities 159,169 156,209 Other long-term liabilities 49,457 49,285 Total liabilities 974,004 976,504 Total shareholders’ equity 582,502 591,473 Total liabilities and shareholders’ equity $ 1,556,506 $ 1,567,977
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MONRO, INC. Reconciliation of Adjusted Operating Income (Unaudited) (Dollars in Thousands) Quarter Ended Fiscal June 2026 2025 Operating Income (Loss) $ 3,695 $ (6,075) Consulting costs related to operational improvement plan 1,009 4,722 Transition costs related to back-office optimization 333 571 Costs related to shareholder matters 80 - Store closing costs, net (a) (2,960) 14,816 Adjusted Operating Income $ 2,157 $ 14,034 MONRO, INC. Reconciliation of Adjusted Net (Loss) Income (Unaudited) (Dollars in Thousands) Quarter Ended Fiscal June 2026 2025 Net Loss $ (2,149) $ (8,050) Pension settlement expense 1,171 - Consulting costs related to operational improvement plan 1,009 4,722 Transition costs related to back-office optimization 333 571 Write-off of debt issuance costs 221 263 Costs related to shareholder matters 80 - Store closing costs, net (a) (2,960) 14,816 Provision for (benefit from) income taxes on pre-tax adjustments (b) 38 (5,297) Adjusted Net (Loss) Income $ (2,257) $ 7,025
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MONRO, INC. Reconciliation of Adjusted Diluted (Loss) Earnings Per Share (Unaudited) Quarter Ended Fiscal June 2026 2025 Diluted Loss Per Share $ (0.08) $ (0.28) Pension settlement expense 0.03 - Consulting costs related to operational improvement plan 0.02 0.12 Transition costs related to back-office optimization 0.01 0.01 Write-off of debt issuance costs 0.01 0.01 Costs related to shareholder matters 0.00 - Store closing costs, net (a) (0.07) 0.37 Adjusted Diluted (Loss) Earnings Per Share $ (0.09) $ 0.22 Note: Amounts may not foot due to rounding. a) Amounts include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the store closure plan, net of related gains on the sale of owned locations, lease assignments and early lease terminations. b) The adjustments to diluted (loss) earnings per share reflect estimated annual effective income tax rates of 26.0 percent for the quarters ended fiscal June 2026 and 2025. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate.