Why Monro Shares Are Sliding Today - Monro (NASDAQ:MNRO)

Monro Inc MNRO reported fourth-quarter FY22 sales growth of 7.4% year-on-year, to $328 million, beating the consensus of $324.66 million.
The gross profit declined 2.3% Y/Y to $104.6 million. The margin decreased 320 basis points to 31.9%, primarily due to an incremental investment in technician headcount and wages to support current and future sales growth.
The operating margin contracted from 6.8% to 3.5%, and operating income for the quarter fell 44.7% to $11.5 million.
The company held $7.9 million in cash and equivalents as of March 26, 2022.
Adjusted EPS of $0.20 missed the analyst consensus of $0.46.
The company's Board has increased its Q1 FY23 cash dividend to $0.28 from $0.26 per share.
MNRO's Board also authorized a share repurchase program of up to $150 million of shares.
In addition, Monro has agreed to divest its non-core wholesale and tire distribution assets to American Tire Distributors for an estimated total transaction value of $105 million.
Price Action: MNRO shares are trading lower by 7.12% at $40.54 on the last check Thursday.