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Monro Inc. (MNRO-2.03%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing includes financial statements for the quarter, showing a decrease in sales to $305,769,000 from $317,653,000 in the same quarter the previous year. The decrease is attributed to lower store traffic and a reduction in comparable store sales.
Cost of sales for the quarter was $200,966,000, representing 65.7% of sales, compared to 64.5% in the same quarter of the previous year. This increase in cost ratio is due to higher material costs and increased levels of self-funded promotions.
The company reported a gross profit of $104,803,000 for the quarter, compared to $112,677,000 in the previous year, with the decline attributed to decreased sales and increased material costs.
Operating, selling, general, and administrative expenses increased to $94,840,000 from $91,294,000, primarily due to litigation reserves, transition costs related to back-office optimization, and store closing costs.
Net income for the quarter was $4,583,000, down from $12,170,000 in the previous year. After preferred dividends, income available to common shareholders was $4,246,000, compared to $11,833,000 in the previous year.
Cash provided by operating activities was $102,988,000, while cash used in investing and financing activities was $112,000 and $99,500,000, respectively.
Monro had a working capital deficit of $234,000,000 as of December 28, 2024. The company acknowledges its dependence on its supply chain finance program and the Credit Facility to meet future obligations.
The filing also details various financial agreements, including amendments to the Credit Facility to provide additional flexibility during the Covenant Relief Period.
Monro declared dividends of $0.28 per share for the quarter, totaling $8,700,000.
The company continues to focus on its automotive undercar repair and tire replacement services, while addressing challenges from economic conditions and vendor relationships.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Monro Inc. quarterly 10-Q report dated January 29, 2025. To report an error, please email earnings@qz.com.