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Monro misses profit, same-store sales expectations; boosts dividend

Tomi Kilgore

Monro Inc. reported Tuesday fiscal fourth-quarter sales that missed expectations, amid a surprise decline in same-store sales, while also announcing a dividend increase and expanded collaboration with Amazon.com Inc. to provide tire installation services. The autocare and tire services said net income for the quarter to March 30 fell to $16.8 million, or 50 cents a share, including a 1-cent-per-share cost related to increased acquisitions activity, from $6.8 million, or 52 cents a share, in the same period a year ago. The FactSet EPS consensus was 51 cents. Sales rose 0.6% to $287.2 million, but was below the FactSet consensus of $292.0 million. Same-store sales fell 5.7% on a reported basis, and rose 0.5% when adjusting for less selling day, while the FactSet consensus was for 2.3% growth. Separately, the company said it was raising its quarterly dividend to 22 cents a share from 20 cents a share, with the new dividend payable June 17 to shareholders of record on June 3. Regarding its collaboration with Amazon, Monro said it was more than doubling the number of service locations to over 800 stores. The stock, which was still inactive in premarket trade, has rallied 41.7% over the past 12 months while the S&P 500 has gained 3.9%.