Retail

For Pep Boys, sales rise and income falls

Posted on June 10, 2014

Pep Boys–Manny, Moe & Jack posted net income of $1.6 million on net sales of $538.8 million for its first quarter ended May 3, 2014. That compares to earnings of $3.9 million on sales of $536.2 million for 1Q 2013.

Operating income increased 71.4%, from $3.5 million to $6 million. The company's net income-to-sales ratio was 0.2%.

Comparable store sales for the quarter decreased 1.4%, broken out as follows:

* an increase of 3.2% in comparable service revenue, defined as labor sales; and

* a decrease of 2.8% in comparable merchandise sales.

Comparable retail sales decreased 1.9%.

“Our first-quarter operating profit improved significantly over the prior year driven primarily by higher gross margin,” says CEO and President Mike Odell. “Our core service business remains solid and we expect tire sales trends to improve in the back half of the year.

"Through the first five weeks of the second quarter, we have seen our service business improve to a positive comp despite the continued pressure in tire pricing. Our service business footprint also continues its growth, with 25 new Service & Tire Centers planned for 2014.

“Our customer strategies are gaining traction and our target customer groups have been endorsing our improved customer experience with new and repeat business, but we need to get to critical mass to accelerate our performance," says Odell.

"In May, June and July, we are grand re-opening in our Road Ahead format all of our stores in our San Francisco, Boston and Charlotte markets. By differentiating ourselves in a competitive landscape, we aim to grow market share with our target customer groups and, in turn, our sales and profits.

"We also continued to see strong growth in pepboys.com digital operations, which includes on-line service appointments, tire sales that are made on-line and installed in our stores, ship-to-home sales and products that are ordered on-line and picked up in our
stores. From a mix of business perspective, sales through digital operations accounted for
4% of our sales during the first quarter as compared to 2.3% for the prior year.”

There are more than 800 Pep Boys locations in 35 states and Puerto Rico. They represent more than 7,500 service bays. For more information, visit www.pepboys.com.

Related Topics: Mike Odell, Pep Boys financials, tire prices

Comments ( 0 )
More Stories
News

ZC Rubber Opens R&D Center

Zhongce Rubber Group Co Ltd. (ZC Rubber) has opened a research and development center in China in cooperation with a state-owned research and development institute.

News

Bauer Built Awards $6,000 in Annual Scholarships

Since 1994 Bauer Built Inc. has recognized the children and grandchildren of its employees through the G. F. “Sam” and Ethel V. Bauer/Bauer Built Inc. Scholarship program. Four high school seniors have earned the prize in 2017.

The Bridgestone Europe headquarters in Zaventem.
Article

Bridgestone in Europe! Building on Continued Success

As I am sure all MTD readers can appreciate, Europe is currently in the grip of a number of significant business trading changes including a fluctuating economy and the very real prospect of the UK market eventually leaving the European Union.

Article

Cost Pressures Will Likely Continue to Build

According to the results of our survey, demand for passenger and light truck replacement tires declined in March. Indeed, from a volume standpoint, the dealers reported they sold 0.8% fewer tires in March relative to the previous year’s period. The decline marks the third straight month of poor results versus the prior year’s period. However, on more a positive note, trends improved sequentially.

ATD's new mixing center is delivering tires to 32 distribution centers. The first truck load of tires pulled out of the dock on May 1.
News

New ATD Mixing Center Has Capacity for Almost 1 Million Tires

American Tire Distributors Inc. (ATD) has opened its fourth regional mixing center in the U.S. Large enough to hold nearly 1 million tires, the mixing center in the Dallas/Fort Worth area will replenish the inventories of 32 ATD distribution centers in the Southwest.

TRMG advises selecting the appropriate repair unit, either a one- or two-piece repair, based on repair material manufacturer recommendations. “For injuries with an angle greater than 25 degrees, depending on repair manufacturer, use a two-piece repair unit system.”
Article

LT Tire Repair: TRMG Revises its Recommendations

The Tread Rubber and Tire Repair Materials Manufacturers Group (TRMG) has released additional Recommended Practices (RPs) for retreading and repairing through the Tire Retread & Repair Information Bureau (TRIB) website. The RPs are free to view on TRIB’s website, www.retread.org.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!