PHILADELPHIA (June 11, 2013) — Pep Boys - Manny, Moe & Jack suffered a 55.7-percent drop in operating earnings for the quarter ended May 4 on 2.2-percent better sales of $536.2 million.
Net income more than tripled to $3.86 million on a one-time tax benefit due to state hiring credits. The drop in operating income—to just 0.7 percent of sales—can be attributed primarily to lower gross profits from service revenues.
Comparable sales increased 1 percent, based on a gain of 4.2 percent in comparable service revenue and an increase of 0.1 percent in comparable merchandise sales. The relatively marginal growth came despite the chain's having 25 more stores in operation than a year ago.