PHILADELPHIA (Nov. 11, 2005) — Pep Boys—Manny, Moe & Jack posted a 2.4-percent decline in sales and a net loss in the third quarter as tire sales plunged 11.6 percent.
Sales fell to $545.2 million from $558.5 million in the prior-year period. Comparable retail sales, which include do-it-yourself and commercial, increased 2.1 percent. Comparable service center revenue, including labor plus installed merchandise and tires, fell 7.6 percent. For the nine months, comparable retail sales were up 0.6 percent while comparable service sales fell 4.8 percent.
The Philadelphia-based automotive chain also posted a net loss of $11.4 million, down from net earnings of $6.67 million a year ago.
For the year-to-date, Pep Boys' sales fell 1.8 percent to $1.69 billion. The company also posted a net loss of $13.1 million compared with a profit of $35.2 million last year.
“It was again a very difficult quarter for our service center operations, with comparable sales down 7.6 percent, which includes an 11.6-percent decrease in tire sales,” said Larry Stevenson, chairman and CEO. He noted that revenues were soft for the quarter but were especially so after Hurricane Katrina and the subsequent high fuel prices.
Pep Boys continues to remodel its retail stores. The company expects 200 of its 593 stores to be re-opened by the end of the fiscal year.