Gross Margin Expansion
Gross margin expanded 90 basis points year-over-year to 33.9% in the fourth quarter, driven primarily by lower technician labor costs as a percentage of sales and productivity gains.
Improved Profitability and Loss Reduction
Operating loss improved to $5.2 million (‑1.9% of sales) in Q4 from an operating loss of $23.8 million (‑8.1% of sales) in the prior year period. Net loss narrowed to $6.6 million from $21.3 million YoY; diluted loss per share improved to $0.23 from $0.72.
Strong Cash Generation and Balance Sheet Liquidity
Generated $70 million of cash from operations in fiscal 2026, ended Q4 with net bank debt of $45 million, cash and equivalents of approximately $15 million and approximately $410 million available under the credit facility.
Progress on Portfolio Optimization and Inventory
Closed 145 underperforming stores during fiscal 2026, completed a major tire inventory reset, improved inventory position, exited 72 leases and sold 26 locations for cumulative proceeds of $25 million (with additional divestiture proceeds of $3 million noted). AP to inventory ratio improved to 202% from 178% year-over-year.
Operational Improvements and Capability Builds
Expanded ConfiDrive inspections across nearly the entire network, rolled out an enhanced district manager toolkit to ~150 stores, intensified targeted digital and CRM marketing, and strengthened vendor relationships and merchandising capabilities — all intended to drive customer acquisition, activation and in-store selling effectiveness.
Forward-Looking Confidence and Guidance
Company expects year-over-year comparable store sales growth in fiscal 2027 driven by performance-improvement initiatives, expects FY27 gross margin to be consistent with fiscal 2026, and provided capex guidance of $25 million to $35 million.