PHILADELPHIA (May 12, 2006) — As executives argue the company is making “steady progress” against its challenges, Pep Boys—Manny, Moe & Jack posted improvements in the first quarter though the auto service chain still reported a net loss.
The Philadelphia-based chain reported a net loss of $922,000, an improvement over the prior year period's net loss of $2.47 million. Still, net sales in the quarter fell 1.3 percent to $555.9 million as comparable store sales fell 0.9 percent.
Comparable retail sales, which include do-it-yourself and commercial sales, fell 3 percent in the quarter, but comparable service center sales rose 2.2 percent. Service center revenue rose slightly to $228.4 million from $224.6 million last year. Gross profit, however, fell slightly to $49.2 million from $53.5 million. Despite a 3.4-percent dip in retail revenues, that segment posted a 5-percent gain in gross profit.
“As our field team has stabilized service center operations, we were able to report a substantial sequential improvement—not just the service center sales improvement we reported in Q4, but also an improvement from Q3 and Q4 last year in bottom line contribution,” said CEO Larry Stevenson.
Pep Boys operates 593 stores in 36 states and Puerto Rico.