PHILADELPHIAPep Boys-Manny, Moe & Jack has appointed Scott P. Sider as CEO and a member of its board of directors.
John Sweetwood, who was serving as interim CEO, will resume his position as an independent board member, Pep Boys said.
Mr. Sider, 54, most recently served as Hertz Corp.'s group president of Rent A Car Americas, the company's largest division.
Pep Boys said that over the course of his tenure with Hertz, Mr. Sider assumed many leadership positions of increasing responsibility including area manager Manhattan, divisional vice president Western Region and president, Off Airport Operations.
Mr. Sider cited his experiences at Hertz as having provided him with an appreciation of customer satisfaction through differentiation, a deep understanding of vehicle maintenance and the need for continual process improvement.
Mr. Sider takes the helm as the Philadelphia-based company reported a nearly quadruple increase in operating earnings in its first quarter, ended May 2, on marginally higher sales of $542.3 million.
Pep Boys' first quarter operating income jumped to $23.1 million from $6 million, the company reported, but the increase included a $10 million pre-tax gain on the sale of a leasehold interest. Net income surged to $11.9 million from $1.6 million.
Pep Boys reinvested a portion of the $10 million one-time gain into converting stores in the Baltimore area to its Road Ahead customer-centric format. Pep Boys will hold a grand reopening in July for those revamped stores.
The retailer's sales gain came from higher service center revenue, which offset a slight drop in retail revenue, the company said.
We are pleased to report the third consecutive quarter of positive comparable stores sales, Mr. Sweetwood said. Once again, tires, commercial, fleet and digital led the way.
Even discounting the gain from the leasehold sale, the company's operating earnings grew by 24 percent, he said, by maintaining our gross profit margins and reducing SG&A expense.