Comps stall at Pep Boys, down 2.8% in Q1
PHILADELPHIA — Comparable sales slipped 2.8% at Pep Boys during the first quarter ended April 28, as customers were slow to come to the retailer for parts and services. The comps decline consisted of a 1.2% comparable-service revenue decrease and a 3.2% comparable-merchandise sales decrease. Total sales for the quarter increased by $11.1 million, or 2.2%, to $524.6 million from $513.5 million for the same period last year.
Net earnings for the quarter were down $1.1 million, or 2 cents per share, from $12.4 million, or 23 cents per share, recorded in the same period last year. The 2012 quarter included, on a pre-tax basis, $1.6 million in merger related costs.
Commenting on the quarter, president and CEO Mike Odell said, “It has been a challenging start to the year, due to the mild winter weather, restrained customer spending and not clicking on all cylinders in our performance. But we have made the necessary changes and expect to return to year-over-year profit growth in the third and fourth quarters, as we had done for 11 consecutive quarters through the third quarter of 2011.”