PHILADELPHIA (Aug. 16, 2006) — Pep Boys—Manny, Moe & Jack's sales rose 0.2 percent in the second quarter as comparable store sales also increased 0.4 percent.
In the quarter, the automotive service chain reported sales of $578.6 million, up from $577.4 million last year. Comparable retail sales, which include DIY and commercial sales, fell 0.5 percent as comparable service center revenue—including labor plus installed merchandise such as tires—rose 1.7 percent.
Net earnings in the quarter improved to $1.47 million from $832,000 the prior period.
For the first half of the year, sales fell 0.6 percent to $1.14 billion as comparable retail sales fell 1.7 percent and comparable service revenue rose 2 percent. Net earnings improved to $603,000 from a net loss of $1.55 million last year.
Also during the second quarter, Pep Boys' CEO Larry Stevenson resigned after three and a half years. Non-executive Chairman Bill Leonard replaced Mr. Stevenson as interim CEO.
“During a time of transition and external distraction for the company and in a difficult macro environment, the company posted flat operating results,” Mr. Leonard said in a statement. “While we need to begin posting significant absolute improvements, I believe the resilience of this organization reflects the talents of its store employee base and the strength of its customer franchise…. I remain convinced that the company's best days are ahead of it.”