PHILADELPHIAPep BoysManny, Moe & Jack nearly doubled its operating profit in the fiscal first quarter ended May 4, but net income dropped 58.3 percent to $1.6 million.
Pep Boys attributed the operating income gainto $6 millionto extraordinary items, including $4 million in litigation accruals, and the net earnings drop to tax benefits accrued in the 2013 first quarter.
Sales grew 0.5 percent to $538.8 million on the strength of higher service-related revenue, which offset lower merchandise sales.
Pep Boys President and CEO Mike Odell attributed the operating profit improvement to a higher gross margin.
The company plans to open 25 Service & Tire Centers this year.