ROCHESTER, N.Y. (Oct. 21, 2005) — A double-digit increase in tire sales during the second quarter helped Monro Muffler Brake Inc. report record sales and earnings for the quarter and half.
Monro Muffler, which operates 625 stores in 18 states, reported net earnings of $7.61 million and sales of $95.6 million for the quarter (up 16.4 and 8.2 percent, respectively) and $15.4 million and $190.3 million for the six months (up 14.8 and 8.2 percent, respectively).
Monro reported that “comparable” tire sales—i.e., discounting sales from new stores—were up about 12 percent for the three months ended Sept. 24. Comparable store maintenance service revenue was up 6 percent, the firm said, but sales of higher profit-margin activities like brakes and exhaust were off somewhat.
Despite the higher percentage of sales revenue from lower margin tire and maintentance business, Monro was able to maintain its gross operating margin, according to Robert G. Gross, president and CEO.
“We are particularly pleased with our progress in the tire category,” Mr. Gross said, “where our expertise and ability to serve our customers have been greatly enhanced by the learning gained from our most recent acquisitions.”
Monro's tire-related acquisitions in the past few years include more than 40 Mr. Tire outlets in Maryland and nearly 50 Tread Quarters stores in Virginia and the metro D.C. area.
Mr. Gross went on to say that Monro continues to seek “similar acquisition candidates” to expand and improve its existing business. He did not elaborate.
Looking ahead, Mr. Gross said he expects Monro to continue to gain market share and outperform the industry based on the firm's “dedicated customer service, efficient operating model and proven grwoth strategy” and regardless of external market conditions.