David Lantz's questions to MONRO (MNRO) leadership • Q1 2026
Question
David Lantz of Wells Fargo requested a detailed breakdown of the 170 basis point gross margin decline, asking about the specific impacts from technician labor and material costs, and the margin outlook for the rest of the year. He also asked about the traffic and ticket components of the Q1 comparable sales growth.
Answer
EVP & CFO Brian D'Ambrosia detailed that the margin decline was driven by a 170 bps increase in technician labor costs and a 120 bps increase from material costs, partially offset by a 120 bps benefit from occupancy leverage. He expects the year-over-year margin pressure to narrow as the company laps prior year promotions and trade-down effects. President & CEO Peter Fitzsimmons stated that Q1 traffic was steady while the average ticket increased.