Sales, earnings decline at Pep Boys

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Pep Boys - Manny, Moe & Jack posted sales of $2.1 billion for its 2007 fiscal year, which ended Feb. 2, 2008. This compares to $2.2 billion recorded during the previous year. During 2007, Pep Boys suffered a net loss from continuing operations of $37.4 million.

Pep Boys also has released its fourth quarter 2007 (ended Feb. 2, 2008) sales, which were $517 million. This compares to $578.9 million during the same period in 2006. On the earnings side, Pep Boys suffered a loss of $18.5 million during the fourth quarter.

"While the difficult economic backdrop created sales challenges during the fourth quarter, we are pleased to confirm that our progress to date leaves us well-positioned to complete this important step in our strategic plan by the beginning of the second quarter this year," says Pep Boys CEO and President Jeff Rachor.

"It is important to note that despite the fourth quarter challenges, the current quarter to date results indicate that retail gross profit margins have rebounded to Q1 2007 rates," he notes.

Pep Boys recently closed a "second sale leaseback transaction" on 18 stores for gross proceeds of $63.6 million, which will be used to pay down debt.

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