PHILADELPHIA (Nov. 11, 2004) — Pep Boys —Manny, Moe & Jack reported a 4-percent increase in net sales for the third quarter as retail sales grew but service sales—including tire sales—fell.
The automotive chain reported sales of $559.2 million, up from $537.7 million a year ago. Comparable sales rose 4.1 percent. Retail sales, which includes do-it-yourself and commercial sales, rose 10.3 percent while service sales, which includes labor, installed merchandise and tires, fell 3.4 percent.
Pep Boys reported net earnings of $7.81 million, down from $13.4 million last year.
“While the current quarter's sales and margins in our service and tire business were unacceptable, we are making concerted and significant strides in rebuilding our service capabilities and infrastructure,” said Larry Stevenson, chairman and CEO. “It will, however, take us a number of quarters before that progress is apparent.”
For the nine months, Pep Boys reported sales of $1.71 billion, a 7.1-percent increase from $1.6 billion a year ago. Comparable sales rose 7.2 percent. Retail sales grew 15 percent while service revenue fell 2.5 percent. The Philadelphia-based company reported net earnings of $38.7 million—improved from a loss of $7.5 million last year.