Pep Boys loses $2 million in 3Q
Pep Boys-Manny, Moe & Jack reported a net loss of $2 million on net sales of $517.6 million for the third quarter ended Nov. 1, 2014. That compares to income of $1 million on sales of $507 million for the same period last year.
Comparable store sales increased 1.2%, broken out as follows:
*an increase of 6.1% in comparable service revenue (labor sales), and
* a decrease of 0.2% in comparable merchandise sales (service center and retail sales).
For the first nine months of its fiscal year, Pep Boys recorded a net loss of $625,000 on net sales of $1.58 billion. That compares to earnings of $10.2 million on sales of $1.57 billion in the first nine months of 2013.Comparable store sales decreased 0.7%.
“Our recent top-line growth has continued into the fourth quarter,” says interim CEO John Sweetwood. “Particular highlights are tires, commercial and eCommerce sales; however, this balance of business shift has continued to pressure gross margin rate.”
The company’s Road Ahead stores continue to produce positive results, according to Sweetwood.
“Cincinnati and Denver will be completed in the fourth quarter, with grand re-openings scheduled for the first quarter of 2015. Baltimore, which will serve as our first test of a reduced average per-store investment, will be grand re-opened in the second quarter of 2015.”
Sweetwood says the company’s CEO search is “progressing as planned.” Mike Odell resigned as Pep Boys’ CEO and president in September, and Sweetwood was named interim CEO.
For recent news on Pep Boys see, “Odell resigns as Pep Boys CEO and president.”