The Pep Boys - Manny, Moe & Jack reported net earnings of $3.9 million on sales of $536.2 million for its 13-week first quarter ended May 4, 2013. That compares to net earnings of $1.1 million on sales of $524.6 million for the same period a year ago. The company’s income to sales ratio was 0.7.
The company also posted operating income of $3.5 million, down nearly 56% from year-ago first-quarter operating income of $7.9 million.
Comparable sales increased 1.0%, broken out as follows:
*a 3.9% increase in comparable service revenue (labor sales) and
* a 2.1% decrease in comparable merchandise sales (merchandise sold through service center and retail lines of business).
The company says the 2013 results included, on a pre-tax basis, a $1.2 million asset impairment charge while the 2012 results included, on a pre-tax basis, $1.6 million of merger related costs. The 2013 results also included a $3.8 million tax benefit due to state hiring credits recorded in the first quarter of 2013.
“Our revenue performance continues to improve,” says Mike Odell, president and chief executive officer.
“All of our service business categories experienced positive sales comps, with the exception of tires. While not quite positive yet, tire sales comps are improving and we are capturing more margin dollars from each tire sold. During the first month of our second quarter, our positive comparable store sales trend has continued.”
Pep Boys has approximately 7,300 service bays in more than 750 locations in 35 states and Puerto Rico. For more information, visit the company’s website.
