Q1 2025 Monro Inc Earnings Call Transcript
Key Points
- Gross margin increased by 220 basis points compared to the prior year, driven by lower technician labor costs and lower material costs.
- Significant acceleration in comparable store sales trends as the first quarter progressed, particularly in the tire category.
- Return to growth in tire units in June, with mid-single-digit growth in units.
- Strong financial position with $26 million generated from operations and a reduced cash conversion cycle by 15 days.
- Continued focus on labor optimization and productivity improvements, contributing to gross margin expansion.
- Sales decreased by 10.3% year over year to $293.2 million, primarily driven by a 9.9% decline in comparable store sales.
- Operating income for the first quarter declined to $13.2 million, down from $17.3 million in the prior year period.
- Net income decreased to $5.9 million from $8.8 million in the same period last year.
- Diluted earnings per share dropped to $0.19 from $0.28 in the prior year period.
- Preliminary comp store sales for fiscal July were down 7.6%, indicating ongoing challenges in driving store traffic.
Good morning, ladies and gentlemen, and welcome to the Monro, Inc.'s earnings conference call for the first quarter of fiscal 2025. (Operator Instructions)
And as a reminder, this conference call is being recorded and may not be reproduced in whole or in part without permission from the company. I would now like to introduce Felix Veksler, Senior Director of Investor Relations at Monro. Please go ahead.
Thank you. Hello, everyone, and thank you for joining us on this morning's call. Before we get started, please note that as part of this call, we will be referencing a presentation that is available on the Investors section of our website at corporate.monro.com/investors.
If I could draw your attention to the Safe Harbor statement on slide 2, I'd like to remind participants that our presentation includes some forward-looking statements about Monro's future performance. Actual results may differ materially from those suggested by our comments today. The most significant factors
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