Pep Boys 1Q sales down, earnings up

PHILADELPHIA The Pep Boys - Manny, Moe & Jack reported first quarter sales of $498 million, as compared to $539.6 million for the same period last year. Comparable sales decreased 5.6%, including a 6.2% comparable merchandise sales decrease and a 2.9% comparable service revenue decrease.

Net earnings from continuing operations increased to $5.3 million or 10 cents per share (basic and diluted) from net earnings from continuing operations of $3.1 million or 6 cents per share (basic and diluted) for the comparable period in the prior year. Net earnings increased to $4.7 million or 9 cents per share (basic and diluted) from net earnings of $3.2 million or 6 cents per share for the prior year.

Interim ceo Mike Odell said, “We are pleased with the progress we have made this quarter. Our service center business revenue and profitability increased. We are broadening our core automotive assortment offering and see positive trends in the categories that have been re-assorted. Our remaining non-core clearance inventory is down to $12.6 million and we expect to complete the sell-through by the end of the second quarter. And, most importantly, we are energizing our team to serve our customers, because that's where it all starts.”