Pep Boys posts Q4 net loss

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PHILADELPHIA (April 14, 2014) — Pep Boys – Manny, Moe & Jack reported a net loss of $3.3 million for the quarter ended Feb. 1, which contributed to a 46-percent drop in fiscal 2013 earnings to $6.9 million.

Sales for the quarter and year dropped 6.6 and 1.2 percent, respectively, to $495.7 million and $2.07 billion, but the declines reflected an extra week of reporting in the fiscal 2012 results. On a comparable 13-week quarter and 52-week year, the firm’s sales were up slightly for the quarter and down slightly for the year, Pep Boys said.

The fourth quarter loss was an improvement vs. the $14.5 million loss recorded in the fiscal 2012 fourth quarter. The Philadelphia-based auto parts and tires retailer and auto services provider did not elaborate on the reasons for the net loss, other than to note it had a $2.8 million “asset impairment charge” on a pre-tax basis.

Overall Pep Boys noted an increase in comparable service revenue of 1.4 percent in the quarter that was offset by a 3.4-percent drop in comparable merchandise sales, with tire pricing playing a measurable role.

“Our service business continues to grow,” said President and CEO Mike Odell. “On a comparable store basis, customer count, maintenance and repair sales and tire units all grew quarter over quarter. While retail tire pricing has recently stabilized, prices are still below last year’s level, which has and is expected to continue to negatively impact top line sales results through the second quarter of 2014.” 

 

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