PHILADELPHIA (Nov. 13, 2003) — Pep Boys—Manny, Moe & Jack reported a 2.2-percent increase in sales for the third quarter, though net earnings fell 5.3 percent for that period.
The Philadelphia-based retail automotive service chain posted net earnings of $14.7 million, down from $15.52 million last year. Sales grew to $537.7 million from $526.3 million in 2002. Comparable sales increased 2.2 percent, including an increase of 2.5 percent in comparable store merchandise sales and an increase of 1.7 percent in comparable service bay revenues.
“This was our first positive comp sales quarter in some time, and we are pleased that we have built some momentum on the top line,” said Larry Stevenson, Pep Boys' CEO. “Much remains to be done, but the combination of exciting new products and aggressive advertising will help us build on the positive sales trend.”
For the first nine months of the year, Pep Boys reported a net loss of $30.9 million vs. a net gain last year of $45.6 million. Sales for the period were $1.6 billion, down 1.7 percent from $1.63 billion in the same period last year.
In September, company officials outlined strategies for moving the company forward, one of which is to add flag-brand tires to Pep Boys' stable. Officials did not give a timeline for this plan, nor did they say which brands will be part of the final initiative. But during a test this summer in the Denver and Houston markets, Pep Boys stores were selling Goodyear, Dunlop, BFGoodrich and Michelin brands, officials said.
Pep Boys operates 595 stores in 36 states and Puerto Rico.