PHILADELPHIA (Dec. 10, 2013) — Pep Boys – Manny, Moe & Jack returned to the black in the quarter ended Nov. 2 despite 2.6-percent lower sales revenue, which the firm attributed to reduced merchandise sales.
The firm reported third quarter net income of $1 million, which contrasts with a loss of $6.8 million in the year-ago period, and a doubling of operating income to $7.64 million.
Sales fell to $507 million on 3.6-percent lower merchandise sales and 0.5-percent higher service revenue.
For the nine months, Pep Boys' net income of $10.2 million was 62.7 percent below the 2012 income, while operating earnings of $28.9 million were 0.3 percent ahead of last year. Sales increased 0.7 percent to $1.57 billion.
Commenting on the results, Pep Boys CEO and President Mike Odell said: “Our strategically important maintenance and repair service business grew in sales for the sixth consecutive quarter.
“As the weather has turned colder, tire sales have started to improve, with mid-level price points and branded tires leading the way. Competitive pressures, however, continue to challenge sales of lower price-point tires.”