Boston, MA 09/09/2014 (wallstreetpr) – Provider of shop and care for car, The Pep Boys – Manny, Moe & Jack (NYSE:PBY) President and Chief Executive Officer, Mike Odell, said that the first five weeks of the third quarter indicated that its comparable store sales were witnessing a small increase.
CEO Speaks
The company CEO said that the drop in DIY and tires segment performance during the second quarter has dragged the gains witnessed in its repair and service maintenance business and digital and commercial operations, according to its press statement.
Mike Odell said that the company has been investing in Digital Operations, Road Ahead, Service & Tire centers and have been continuously producing favorable results to improve its top line. The Pep Boys has also been witnessing growth in market share in its Road Ahead format as a result of the re-opening of four key markets such as San Francisco, Boston, Tampa and Charlotte. This, in turn, helped its sales.
The CEO indicated that it would convert three markets in Denver, Cincinnati and Baltimore as the next step in the current year. It also aims for 50 more stores in the next year. The company also expects to cut down its average per store investment to $440,000 from $550,000 as a result of its refined model.
The Pep Boys – Manny, Moe & Jack (NYSE:PBY) said that it would develop plans to cut down its expenditure model to reflect the challenges faced in its DIY business. It is estimating to save $25 million on an annualized rate.
2Q Results
The Pep Boys suffered a net loss of $0.3 million or breakeven a share versus net earnings of $5.4 million or ten cents a share in the year-ago quarter. Its sales slipped 0.3% to $525.8 million from $527.6 million in the previous year quarter.
Its comparable sales fell 1.8% since comparable merchandise sales drop of 3.8% has more than offset 5.4% increase recorded in comparable service revenue. The Pep Boys – Manny, Moe & Jack (NYSE:PBY) disclosed that after re-categorization of sales into the respective business lines from where they generated, its comparable retail sales witnessed a fall of 3.6% while comparable service center revenue slackened 20 basis points.
