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 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

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

Comments ( 0 )
More Stories
Jose Perez (left) and Matthew Greco explained how they increased alignment sales at their Golden West Tire Centers stores at a seminar for Big O tire dealers.

How to Sell More Alignments

How can dealers get more cars on the alignment rack? Matthew Greco and Jose Perez answered that question in a seminar at Big O Tires LLC’s annual dealer meeting last April.

"Our goal is to provide a clear and compelling 2017 Dealer Program well in advance of 2017 so that we can hit the ground running on Jan 1, 2017," says Falken Tire Corp.'s Darren Thomas. 

A Familiar Face Returns to Falken Tire

Darren Thomas proves you can go home again. Thomas, vice president of sales and marketing for Falken Tire Corp. from 2002-2008, has returned as senior vice president of sales and marketing.

This 2016 Tesla Model X P90D Ludicrous makes its world debut at the Toyo booth during the 2016 SEMA Show.

Toyo Goes 'Big' at 2016 SEMA Show

Toyo Tire U.S.A. Corp. is bringing big displays and big vehicle debuts to the 2016 Specialty Equipment Market Association (SEMA) Show in Las Vegas, Nev.


Point S Enters Another New Market: Asia

Point S is continuing its expansion around the globe, with a partnership that will bring the brand to Asia. A master franchise agreement with Goodway Integrated Industries Berhad (GIIB Group) and partners will create a dedicated company to manage and develop the Point S network.


Goodyear 3Q Results Are Due Oct. 28

Goodyear Tire & Rubber Co. will report third quarter 2016 financial results on Friday, Oct. 28, followed by an investor conference call at 9 a.m.

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!