Overview

• US auto repair and tire seller missed analyst expectations for Q4 revenue

• Co reported wider than expected adjusted loss per share

• Gross margin expanded 90 bps yr/yr, helped by lower technician labor costs

Outlook

• Monro is not providing fiscal 2027 financial guidance at this time

• Monro expects ability to drive value will translate to sales and profit growth

Result Drivers

• STORE CLOSURES - Q4 sales decline was primarily driven by the closure of 145 underperforming stores

• TIRE WEAKNESS & WEATHER - Persistent weakness in tire units and severe winter weather reduced customer traffic and sales, according to CEO Peter Fitzsimmons

• GROSS MARGIN GAINS - Gross margin expanded 90 bps yr/yr, mainly due to lower technician labor costs as a percentage of sales

Company press release: ID:nBw4kHnNla

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Miss	$273.84 mln	$283.47 mln (5 Analysts)
Q4 Adjusted EPS	Miss	-$0.16	-$0.05 (5 Analysts)
Q4 EPS		-$0.23
Q4 Net Income		-$6.58 mln
Q4 Comparable Store Sales Growth		2.80%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for Monro Inc is $22.50, about 35.9% above its May 26 closing price of $16.56

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 29 three months ago

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