Monro, Inc. (NASDAQ:MNRO) shares are trading lower on Thursday.
The company reported fourth-quarter adjusted earnings per share of 21 cents, missing the analyst consensus of 30 cents.
Quarterly revenues of $310.08 million missed the street view of $320.239 million. Sales for the fourth quarter decreased 0.2%.
“While an industry-wide deferral and trade-down cycle has lasted longer than most in our industry would have expected, we are navigating weakness in the tire market well with our actions and our recently implemented initiatives. We have made foundational progress that will enable Monro to reap benefits when tire volumes recover,” said Mike Broderick, President and Chief Executive Officer.
Comparable store sales in the quarter under review increased 0.1% on a reported basis and decreased 7.2% when adjusted for days. This compares to an increase in comparable store sales of 4.5% in the prior year period.
The company said this was primarily driven by a strained low-to-middle-income consumer who traded down to tires at opening price points as the industry worked to clear an oversupply of lower-margin tires.
Gross margin increased 210 basis points compared to the prior year period, primarily resulting from lower technician labor costs as a percentage of sales, including a 15% reduction in overtime hours and lower material costs as a percentage of sales.
During the fourth quarter, the company closed eight stores. Monro ended the quarter with 1,288 company-operated stores and 51 franchised locations.
Monro said it is not providing fiscal 2025 financial guidance at this time.
Dividend: The company announced today its board of directors has approved a cash dividend for the first quarter of fiscal year 2025 of $0.28 per share. The cash dividend is payable on June 18 to shareholders of record on June 4.
Price Action: MNRO shares are trading lower by 7.92% to $23.91 at last check Thursday.