Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 28, 2020 09:52 AM

Monro Q4 earnings plunge on impact of mild winter, pandemic

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    ROCHESTER, N.Y. — Monro Inc. suffered a 98.6% drop in operating income and reported a net loss for the quarter ended March 31 on 0.4% lower sales, as the retailer suffered the double impact of a mild winter in the first part of the quarter and the early stages of COVID-19-related business interruption in the latter weeks.

    The weaker fourth quarter impacted the firm's fiscal 2020 results as well. Operating income for the year fell 19.8% to $101.7 million, while sales revenue increased 4.7% to a record $1.26 billion. Net income fell 27.2% to $58 million.

    Monro noted the revenue increase was driven by first-time sales from acquisitions throughout the year. Otherwise, comparable store sales dropped 2.3% throughout the year, with sales drops of approximately 1% for brakes, 2% for tires and maintenance services and 3% for alignments and front end/shocks compared with the prior year.

    The fourth-quarter operating profit of $404,000 represented 0.1% of the $286.1 million in sales, versus a 9.9% operating ratio a year earlier. The net loss was $3.78 million, compared with net income of $16.8 million in fiscal 2019.

    During the fourth quarter, the company opened three and closed nine company-operated stores, ending the quarter with 1,283 company-operated stores and 98 franchised locations. The company closed six "underperforming" stores during the quarter and has identified 36 others it expects to close during the first and second quarters of the current fiscal year.

    Monro President and CEO Brett Ponton noted that Monro's fourth-quarter performance was challenged by mild winter weather conditions in January and February, and then experienced a "substantial drop" in traffic due to the impact of the COVID-19 restrictions in the second half of March.

    Mr. Ponton went on to say operations were "significantly" impacted by COVID-19 in April and into May, with comparable store sales declines of approximately 41% and 24%, respectively, versus the prior year periods.

    However, he said, "We are encouraged by the gradual improvement in traffic we have seen towards the end of May as stay-at-home orders are lifted across the nation. While we navigate this uncertain environment, we are focused on the elements of the business within our control, including advancing our Monro.Forward initiatives as we look forward to continuing to deliver long-term, sustainable value once the pandemic subsides."

    Monro at this time did not offer a specific forecast for the remainder of fiscal 2021, but did say it has suspended for now all merger-and-acquisition activity.

    Regarding the COVID-19 pandemic and its effect on operations, the company stressed that its stores had been deemed essential services and continue to operate on reduced hours, even in states where "stay-at-home" orders remain in place.

    The company reiterated that its top priority continues to be the health and safety of its employees and customers, and to that end, it has implemented stringent safety protocols, robust sanitation and cleaning measures, and contactless services, Where possible, employees are working remotely and employees who were directly affected by the virus were offered extended paid time-off.

    To maximize its financial flexibility, Monro drew down the remaining $350 million from its revolving credit facility at the end of March. Cash and cash equivalents are approximately $375 million as of May 26.

    With a solid balance sheet and ample liquidity, Monro said it believes it is well-positioned to navigate the current environment.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Icahn-owned Auto Plus files for Chapter 11 protection
    2
    Truck sector leads U.S. tire market; consumer down
    3
    Goodyear to trim jobs amid 'uncertain' economic outlook
    4
    SEMA urges USTR to end section 301 tariffs on Chinese goods
    5
    Gills Point S acquires Hogan Tires of Maine
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION