PHILADELPHIAPep BoysManny, 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 company 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.
Our strategically important maintenance and repair service business grew in sales for the sixth consecutive quarter, said Pep Boys CEO and President Mike Odell.
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.