ROCHESTER, N.Y. — Monro Inc. suffered double-digit drops in operating and net income for the quarter ended Dec. 23 as revenue slid 0.9 percent on lower comparable store sales.
Despite the sales and earnings declines, Monro President and CEO Brett Ponton expressed confidence for the fourth quarter and full fiscal year, noting that business was recovering thus far through the end of January.
Third quarter operating income fell 11.4 to $29.3 million on sales of $285.7 million, yielding a 10.3-percent operating ratio. Net income slid 34.1 percent to $11.6 million.
Monro said comparable store revenue fell 3.1 percent for the quarter, based on drops in sales of brakes (down 1 percent), maintentance services (3 percent), tires (4 percent) and alignments (5 percent). The drop in comparable store revenue was nearly balanced out by $6.4 million in sales from new stores, including recent acquisitions.
Operating income for the nine months was up 0.6 percent to $96.9 million on 9.5-percent higher sales of $842.2 million. Revenue from new stores accounted for nearly all of the gain, Monro said.
Net income was off 10.4 percent to $46.5 million.
During the quarter, Monro opened four and closed two stores, ending the quarter with 1,138 company-operated stores and 103 franchised locations. The company also signed a deal to acquire seven stores within the firm's existing market footprint.