Monro announced financial results for its fourth quarter and fiscal year ending March 25, 2023. Sales for the fourth quarter decreased 5.2% to $310.8 million, as compared to $328.0 million for the fourth quarter of the fiscal year that ended March 26, 2022. The company said the total sales decline of $17.2 million was due to the divestiture of the company’s wholesale tire and distribution assets in the first quarter of fiscal 2023.

Gross margin increased 150 basis points to 33.4% in the fourth quarter of fiscal 2023 from 31.9% in the prior year period, Monro said. The year-over-year improvement primarily resulted from 210 basis points of benefit from the divestiture of the company’s wholesale tire and distribution assets as well as material costs and distribution and occupancy costs that were lower as a percentage of sales.

Net income for the fourth quarter of fiscal 2023 was $0.4 million, as compared to $8.6 million in the same period of the prior year. During the fourth quarter of fiscal 2023, the company said it acquired five stores, opened two stores and closed four stores. Monro ended the quarter with 1,299 company-operated stores and 77 franchised locations.

In the company’s full-year results, sales decreased 2.5% to $1.325 billion from $1.359 billion in fiscal 2022 and comparable store sales increased 2.8%, compared to an increase of 15.2% in the prior year period. Comparable store sales at retail locations increased 3.5%, compared to an increase of 17.1% in the prior year period.

Net income for fiscal 2023 was $39.0 million, or $1.20 per diluted share, as compared to $61.6 million, or $1.81 per diluted share in the prior year period.