"Total sales -- $293.4 million, a decrease of 4%, driven by the impact of 145 store closures, partially offset by higher comparable store sales. Comparable store sales -- Increased 1.2%, with comp growth of 4% in November and 1% in December, after a decline of 2% in October. Tire category performance -- Sales rose 5%, though unit volume declined by 1%, indicating price or mix as the main driver."
"Gross margin -- Increased by 60 basis points to 34.9%, with the improvement attributed mainly to lower material and occupancy costs, partly offset by higher technician labor costs. Operating income -- Reached $18.6 million (6.3% of sales) compared to $10 million (3.3% of sales) in the prior year period. Adjusted operating income (Non-GAAP) -- $10.3 million, or 3.5% of sales, compared to $11.7 million, or 3.8% of sales, in the prior year."
"Diluted EPS -- $0.35 versus $0.15 in the prior year; adjusted (non-GAAP) diluted EPS was $0.16 compared to $0.19 previously. Total operating expenses -- $83.8 million (28.6% of sales), down from $94.8 million (31% of sales) a year ago, with savings from real estate dispositions and store closures, offset by increased marketing and consulting costs. Inventory reduction -- System-wide inventory declined by over $7 million in the quarter, now totaling more than $28 million, representing a 16% reduction over nine months."
Total sales were $293.4 million, a 4% decrease driven by 145 store closures while comparable store sales increased 1.2% (4% November, 1% December, -2% October). Tire sales rose 5% despite a 1% unit volume decline, indicating mix or pricing as the driver. Gross margin improved 60 basis points to 34.9% from lower material and occupancy costs, partially offset by higher technician labor. Operating income increased to $18.6 million (6.3% of sales) while adjusted operating income declined to $10.3 million (3.5%). Diluted EPS was $0.35 and adjusted diluted EPS was $0.16. Operating expenses declined to $83.8 million. System-wide inventory fell by over $7 million to more than $28 million, and real estate dispositions generated $17.3 million in the quarter ($22.8 million year-to-date).
#store-closures #comparable-store-sales #gross-margin-improvement #real-estate-dispositions #inventory-reduction
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