PHILADELPHIA (Jan. 3, 2006) — Pep Boys—Manny, Moe & Jack said its comparable service center revenue—which includes tires and labor—grew 0.7 percent so far in the fourth quarter after a 7.6-percent drop in the third quarter.
Sales for the fourth quarter to date rose 1.1 percent to $401.5 million from the previous period. The full earnings report for the quarter and full year will be made in March.
“We are pleased that revenues generated from our service center business have accelerated substantially from this summer,” said CFO Harry Yanowitz. “However, as we discussed on our last earnings call, restoring margins to historic levels will also require improved tire margins and labor productivity.”
The Philadelphia-based automotive service chain did not report quarter-to-date earnings in the statement. The mid-quarter report was made as the company is in the process of syndicating a $200 million senior secured term loan. Pep Boys said it disclosed the mid-quarter sales report for the syndication process.