Monro, Inc. Announces Q1 2022 Financial Results

Monro, Inc. recently announced its financial results for its first quarter, which ended June 26.

Sales for the first quarter of the fiscal year ending March 26, 2022 increased 38.4% to $341.8 million, as compared to $247.1 million for the first quarter of the fiscal year ending March 27, 2021. The total sales increase of $94.7 million for the first quarter resulted from a comparable store sales increase of 34.5% for the period and an increase in sales from new stores of $14.1 million, including sales from recent acquisitions of $13.6 million. In the prior-year period, Monro reported a decrease in comparable store sales of 25.8%, which the company said was due to a substantial decrease in traffic related to the COVID-19 pandemic.

Comparable store sales increased approximately 57% for brakes, 54% for alignments, 42% for maintenance services, 40% for front/end shocks and 25% for tires compared to the prior-year period.

Gross margin increased 140 basis points to 36.8% in the first quarter of fiscal 2022 from 35.4% in the prior-year period. The increase was due to higher comparable-store sales in the first quarter of fiscal 2022, which resulted in lower fixed distribution and occupancy costs as a percentage of sales, as well as a higher sales mix of service categories, compared to the prior-year period, the company says.

The remaining year-over-year dollar increase resulted from increased store management and advertising expenses needed to support higher consumer demand, as well as expenses from 44 net new stores compared to the prior-year period. The decrease in operating expenses as a percentage of sales in the first quarter of fiscal 2022 compared to the previous year period was due to an increase in comparable-store sales. Excluding litigation settlement costs, operating expenses for the first quarter of fiscal 2022 were 27.5% of sales.

Operating income for the first quarter of fiscal 2022 was $27.9 million, or 8.2% of sales, as compared to $11.4 million, or 4.6% of sales in the prior-year period. Excluding litigation settlement costs, operating income for the first quarter was $31.8 million, or 9.3% of sales.

During the first quarter of fiscal 2022, the company opened 30 company-operated stores and closed two stores. Monro ended the quarter with 1,291 company-operated stores and 91 franchised locations.

The Goodyear Tire & Rubber Company has named Ryan Waldron as president of the company's Americas business unit, reporting to Chief Executive Officer and President Mark Stewart. He succeeds Steven R. McClellan, who retired on April 1.

"At Goodyear, our customers are at the center of everything we do, and in Ryan Waldron, we have a customer-centric, execution-focused business leader with a deep understanding of both the marketplace and all aspects of our business, as well as a proven track record of delivering results," Stewart said. "I am thrilled to announce him as president of Goodyear's Americas business and have enormous confidence that under his leadership, both the company and our customers will reach even greater levels of success."