ROCHESTER, N.Y. — Monro Inc. reported a 2.1-percent increase in operating income for the quarter ended Sept. 29 on 10.5-percent higher revenue of $307.1 million, growth that was buoyed significantly by first-time sales of recent acquisitions.
Because of the larger sales increase, the operating margin fell a point to 11.2 percent, Monro said. Net income jumped 26 percent to $21.8 million.
Comparable store sales represented about a third of the revenue increase, Monro said, including gains of about 12 percent for brakes and 3 percent for tires, while sales volume was flat for both maintenance services and front end/shocks and decreased approximately 1 percent for alignments.
During the quarter, the company opened 17 company-operated locations and closed three, ending the quarter with 1,178 company-operated stores and 97 franchised locations.
"We delivered another quarter of strong comparable store sales growth and robust earnings per share, driven by higher average ticket from improved in-store execution," President and CEO Brett Ponton said.
"Our sustained momentum reflects our relentless focus on driving operational excellence and delivering a consistent 5-star experience to our customers. The execution of our Monro.Forward strategic initiatives continues to progress on schedule, and we are pleased with the key milestones we achieved during the quarter.
In addition to the launch of a data-analytics based CRM platform, Monro revamped its websites and expanded its collaboration with Amazon.com Inc.
Operating income for the six-month period inched up 0.3 percent to $67.5 million on 8.3-percent higher sales of $602.9 million.