Thanks Thank today. you, for morning, Maureen, and good everyone. us joining
in We tire higher and performance results disappointed by are in as pressure our related to labor the our gross quarter, second financial was margin significantly impacted costs.
margin will performance, However, we in I our detail taken which improve quickly shortly. have to actions greater discuss
the the progress Positively, Monro.Forward execution we we on of have are our very made strategy. strong pleased with
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to price were related While costs price our with increased customers by we Tier sensitive to pass to more able X impacted tires. tires, on were our
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markets Geographically, markets our northern stores. our outperformed southern
added stores including acquisitions. from $XX.X million quarter, the recent revenue of million New during $XX.X
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margin this second our for believe as a quickly us we to However, represent have year watermark results drive low improvement. moved we quarter
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Our will to technicians driving allow and sets in margin expansion. long-term the of store number the level and be rebalance in of quickly critical new skill system each us accurately which will
recently and staffing like Chief Operating to joined Monro Rob moment day-to-day mine, top welcome With take Rajkowski, our I’d execution Officer. as to of a who our
on do deeper the and move thrilled effectively across our importance into are to transformation, that. team base just our Rob have to recognize help we of our we company As operating us
executing I’d programs strong as strategy, on to his critical leadership turn Rob track has Monro.Forward implementing next our will record and to which in skills on as four. operational operations, be slide marketing, functions, demonstrated merchandising like and continue excellence integrating well and we extensive experience as
procedures, quarter most progress Like operating in-store most have. to refresh we experience, implementing many the focuses initiatives which our appearance, on refreshing our our our significant this largest the stores Monro more this notably, call consistent customer create to store Therefore, program. are also made relevant our we improve asset We stores marketing retailers, on a initiative standardized while and playbook.
demographics sacrificing our a targeted of service format. to where our in our believe type store revenues. without Additionally, sales brand increase select favor will and are we We awareness tire this this optimize rebranding tire-oriented banner stores
mentioned twice the have the a stores up service make As stores, sales annualized previously, we significant tires automotive compared to of portion fact aftermarket. our generate that reflecting tire the approximately
at markets XXXX. in We refresh program and the XX completed XX Mid-Atlantic first Rochester stores year the the pilot to stores scaling southern initiative a markets of began quarter in last our and fiscal during
of change stages quarter second this at stores. quarter, stores of an brought XX stores. completed and California the four During the XX recently began our XXX the total and additional This work began also acquired to transformation markets in stores we substantially of in various of
weeks. on step As refreshed see process five, store is the of an slide implemented is you our program approximately can XX extensive course that seven over
this appearance our resulted caused updates While and quarter. to we day-to-day in of the process excellence stores to some sales the to of in the dealing our had impact, than XX-basis-point these operational necessary implementing initiatives, the comp anticipated while expected more cause the headwind construction with to execution also disruption and had we
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already learned we plans. mistakes, being go have which our are Importantly, implemented we from our forward into
rollout store more to forward. during will approach streamlined transformation, have ensure that we the smoother prepare our support is believe our better will targeted which and a processes In moving we the particular, teammates
appearance would the share store we like refresh the completed we you to six, stores a making changes present slide have Turning to program why compelling to which that the case I are and the with results to-date, of believe for branding.
which includes one, Group store includes were stores, the which as completed XX group the reporting stores that Rochester in second and are the double-digit mid-Atlantic comparable pilot as quarter growth year-over-year. two, sales well
larger analytic which long-term are gives contribution completed us forecast of with as refresh program forward. our moving the stores, our expected results as these of confidence the model, line of Importantly, benefit well recently the in in our
the we began procedures second three, the XX quarter our locations, substantially that during finalize the we the recently which refresh includes acquired in will late second where quarter. of completed and implementing second stores the our operating of standardized we group During the California XX year, half
As previously focus. for be maintaining to our while higher our stores Service tires, Centers rebranded Choice banner will mentioned, under service Auto the California drive Tire awareness
see quarter. initiative believe moving timeline of we year of important much to as provided will minimize and this our steam rollout the full and can is We a a per measured to slide refresh limit the over disruption still it setting the next a work to we half. are you program As stores while possible, XX seven, albeit we of approach XX ahead as to on take a
traction has what newly The possible include we group will acquired of stores quarters, expect few order be model to increased indicated visibility for of achieve over in and where our strongest prioritized stores the our potential next highest have our in the tire banners the targeted markets that we returns. analytics
want some in a moment technology investments believe be to a will we scalable that instrumental Turning we making to capable to take slide platform eight, sustainable creating highlight of I growth. of are the
get were speed. needed and up When there infrastructure our significant transformation that done be began work our we to to to
have tools and expand company. implemented we which efficiency continued foundational First, to our stores across to field drive management organization, our we in
we updated our network This has XX% are digital our rollout to We be the technology, a process phone network facilitate towards been of the critical, infrastructure out customer also to rolled upgrade of new the store far end as which in implementing will year. base. thus better facing system new approximately of store
platform support category continue our to by base tire year. introduce for and merchandising piloting the fiscal have pricing our scheduling we a teammates, staffing strengthen University introduced that our and we Monroe of model dynamic cloud Additionally, strategy, To will system. the the end be management to will
state-of-the-art all to car and future needs. support And span will These be of better which investments our and success. inspection areas customer a technology critical tool piloting we are across is finally, to our our technician cloud-based business
the initiatives to of fiscal XXXX. completed be We of end expect the by rollout these
initiatives, satisfaction during average star program Turning in from on second our while quarter, ratings and remainder stars, before and the rating nine to into we launched. focus of X.X Monro.Forward resulted up bringing customer online a maintained our already refresh out program, X.X our reputation, the store our average have all-time the improving significantly roll we slide star our stars X.X which
in feedback X continue the drive leverage experience received each goal a we the delivering of of stores. with consistent star our operational will to improvements to We ongoing
our to quarters, acquisition retention customers Turning enhance analytics efforts initiatives meet data prior in our to to where leveraging we driven customer-centric engagement, future by consistent are. strides our are making our and customer they current and with
our to consumer increases sequentially. drive appointment and to online in actions year-over-year directions improved both retail requests notable including driving have and clicks Additionally, call, websites continued
system This a phone. last improving consistency better implementing communications. we on represents track our visibility digital process phone phone an will to step As by infrastructure our in drive significant and providing of new system, help customer in in strategy us discussed our the which and execution the quarter, improved network we are a customer allowing
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our On are of with collaboration XX states. Amazon.com, stores rollout pleased this with partnership XXX than at the we across more smooth
locations We this are across continuing collaboration and strong these at customer metrics expanding portfolio. to look see forward our to satisfaction
order for we our made management initiatives, drive both store which a to push our have we focus omnichannel staffing of the margin remainder at our in phase the customer-centric back As decision improvement. on of strategy executing help will category and initiatives, second to look
strategy, online expect tires omnichannel view our the We phase offering appointment fiscal XXXX. to second to installation and and including customers of for now option in-store during purchase the schedule our an implement
our our strategy beginning category service to initiatives. our product optimize Turning offering and management to with
quarter, I pressured and As our material of product costs an impact to previously, our category. margin increased was tire the during mentioned the mix in gross
providing previously, enable to improved As to software the quarter, will be new implement us we pricing tire will begin fourth focused we pricing better on mix drive future therefore, and, which optimize visibility improvement. we a will This tool critical expect into had are assortment strategy. will our assortment, that in we margin mentioned our in optimizing our
strong see Good-Better-Best to continue strategy. we addition, our merchandising of performance In
are of this until second while in difficult the these benefits. it full first XXXX, still that I noted we high achieved quarter realized pleased quarter quarter As comparables this the were the demand packages earlier, Therefore, we wasn’t launched we that the more and category. in fiscal growth
year. conversion Importantly, during help the three we service of introduced in-store second new we the end the towards quarter, half packages of the stronger back expect drive which will
strategy drive merchant sales. to sustainable, hold comparable traffic focusing we across taken has store long-term, Our to on and store improving our look base forward
initiatives. on I’d team to our provide engagement productivity Now, an and like update
previously cloud-based by focused our laser pilot As rollout scheduling of mentioned, on year-end. model are we store the
team key and improving Additionally, priority. engagement our productivity a remains
We the have program our and store base. University, process in we it rolling the our of cloud-based curriculum expanded training Monro across out began
This job for talent lowest we platform This proposition commitment to satisfaction be our real value rates. robust will our critical is driving teammates enhancing meaningful labor drive levels will the retaining expect help since XXXX, despite post in are and we our in it continued to engagement our improvement us fiscal and that results turnover pleased market. year-to-date and
Nevada acquire four further have strategy that executing implement companies, Idaho, attractive Northern as to XX acquisitions we acquisition to of continue on definitive three pleased to in Vegas, agreements Boise, remained our announce we to The include are two extend to today nine Las our we the XX, in Moving on execution with dynamic strategy, in these and focused locations slide our opportunities region. and signed and stores on footprint one that California. locations have of to companies demonstrate this
ourselves Importantly, West potential concentration to to ability on consumer position vehicles by and our Coast, enhanced the to presence long-term this service national in also ride and high our we market growing a accounts sharing. of capitalize the shift on solidifying better
tires. sales, new service and sales which The expected a approximately XX% Idaho, acquisition of in million $XX in in Monro XX% add is to Nevada and mix are states annualized represented
fiscal recent annualized the quarter in per our in in close the XX% California XX% fiscal breakeven entrance of tires. acquisitions earnings accusations and complemented of XXXX approximately are service represented expected add sales state $XX in sales, to are into to million diluted mix third expected to These share and to The be XXXX. and
and now of These Louisiana. position locations expected in to locations sales, exposure recently fiscal in we be to acquisition We represent in add service XX% the of previously diluted are annualized state per share and XX% XXXX. closed mix earnings increasing XX announced have in entered sales our this Additionally, eight store in locations south. market $XX approximately million tires, and breakeven our solidifying further a our
pipeline to from XX attractive acquisitions in and five completed stores. on annualized XXXX We a execute with expected $XXX sales. opportunities, currently, Overall, we million to M&A announced and represent fiscal to in collectively well-positioned signed robust continue remain ranging over XX NDA of and opportunities have
geographic to We and opportunities while we expand believe these serve, our will allow markets underdeveloped our us maintain leadership into attractive position in to regions. the footprint continuing
and we the integrate us procedures in-store standardize Importantly, more brand Monro.Forward and effectively that to will believe operating implementation position our our initiatives efficiently acquisitions. to standards our of
store five locations six greenfield bringing opened we openings fiscal XXXX. to in total during second greenfield the Lastly, quarter, our
completing we are are In strength initiatives long-term our strategy performance executing our platform path business our and we and Monro.Forward conclusion, in drive transformation, sustainable a while will was to for our quarter create this and By growth. forward. our in challenged, firmly future our confident committed
thank ongoing strategy to customers shareholders and our as we their for and our our support. like teammates I’d effort Importantly, their for implement
turn additional that, second the fiscal over Brian will provide call With detail on financial performance to XXXX quarter I our outlook. who will and
