PHILADELPHIA (March 5, 2004) — Pep Boys—Manny, Moe & Jack's fourth quarter sales were up 13.6 percent on a 15.9-percent jump in comparable merchandise sales, but the company warned it still is at the beginning of its “retail renewal.”
Sales for the quarter ended Jan. 31 were $529.6 million, up from $466.2 million in 2002. In addition to the comparable merchandise increase, comparable service revenue increased 5.1 percent. In the quarter, the automotive service and retail chain posted adjusted net earnings of $6.3 million, an improvement from 2002's adjusted earnings of $1.68 million.
“While we are very pleased with our fourth quarter results, we are in the early stages of our retail renewal, and I would caution that comp sales were driven by new products introduced during the Christmas selling season and may be difficult to repeat,” said Larry Stevenson, CEO of the Philadelphia-based chain.
For the full year, Pep Boys reported adjusted net earnings of $45.4 million, down from $47.9 million in 2002. Sales for the year were $2.13 billion, up 1.7 percent from the previous year's $2.1 billion. Comparable merchandise sales were up 1.7 percent, and comparable service revenue was up 1.3 percent.