Pep Boys reports loss of $26.7 million in 4Q
Pep Boys – Manny, Moe & Jack reported a net loss of $26.7 million on net sales of $502.4 million for the fourth quarter of fiscal 2014 ended Jan. 31, 2015. In the year-ago quarter, the company reported a net loss of $3.3 million and net sales of $495.7 million.
For fiscal year 2014, the company reported a net loss of $27.3 million on net sales of $2.1 billion. That compares to net income of $6.9 million on net sales of $2.0 billion in fiscal 2013.
Service center revenue in the fourth quarter 2014 versus 2013 increased 3.2%, while comparable retail sales decreased 1.0%, according to the company.
Service center revenue in fiscal year 2014 versus 2013 increased 1.4%, while comparable retail sales decreased 1.9%.
Interim CEO John Sweetwood says the fourth quarter was a “time of transition” for the company.
“We continued to increase our sales in the growing service segment,” says Sweetwood.
“Our investments in the high-growth areas of our business – commercial, tires, fleet and digital increased revenue, but temporarily depressed margins. To date in the first quarter, we have generated higher sales and experienced recovering margins.
"With only three weeks to go in the first quarter of 2015, we are seeing a turn around in the business. At this point comparable store sales are up with double-digit growth in commercial, fleet and digital."With margins recovering, combined with improved expense and inventory management, to date we are seeing an improvement in operating profit and cash flow.”
Pep Boys has 806 locations in 35 states and Puerto Rico.For other news on Pep Boys, see: