Monro Muffler (NASDAQ: MNRO) reported Q2 EPS of $0.38, $0.09 better than the analyst estimate of $0.29. Revenue for the quarter came in at $288.6 million versus the consensus estimate of $293.72 million.

“While the disruption created by the COVID-19 pandemic has continued to weigh on our top-line results in the second quarter and third quarter-to-date, with comparable store sales down approximately 12% in fiscal October, our performance is tracking in-line with key industry indicators. Given the ongoing challenges in the operating environment, we continue to focus on the aspects of our business within our control. This includes driving profitability by actively managing our store operating hours and staffing levels to match demand, as well as expanding our variable margins through improved tire pricing and labor productivity. These efforts combined with targeted cost reductions and working capital management have led to a significant increase in operating cash flow in the first half of the fiscal year. Further, we remain committed to our disciplined M&A strategy as evidenced by our continued expansion in the attractive West Coast region with the acquisition of 17 stores in Southern California,” said Robert Mellor, Chairman of the Board of Directors and Interim Chief Executive Officer.

Mellor continued, “We are firmly committed to the ongoing execution of our Monro.Forward strategy and made great progress this past quarter. Most notably, we resumed our store rebrand and reimage program and substantially completed the transformation of approximately 40 stores in the second quarter. Importantly, the changes we are implementing across our business will ensure Monro is well positioned to capitalize on the continued demand recovery. Our healthy cash flow and solid balance sheet provide us with the financial flexibility to execute these transformational initiatives and capitalize on potential acquisition opportunities to drive sustainable growth. We are confident that our clear path forward will allow us to deliver long-term value for our shareholders.”

Company Outlook

Due to the ongoing uncertainty caused by COVID-19, it remains difficult to accurately predict the full impact of the pandemic on overall demand and Monro’s operations for the remainder of the year. Therefore, the Company is not providing fiscal 2021 guidance at this time.

For earnings history and earnings-related data on Monro Muffler (MNRO) click here.