Pep Boys-Manny Moe & Jack said sales at established stores
rose 0.8% in the quarter ended in May, led by growth in service
revenue.
At stores open at least 13 months, service
revenue—which is limited to labor
sales—increased 1.3%, while merchandise sales grew 0.6%.
Interim CEO John Sweetwood said the latest period marked the third
consecutive quarter of sales growth at established stores.
For the period ended May 2, the auto-parts and services
company's overall revenue increased 0.6% to $542.3 million from
$538.8 million a year earlier.
Pep Boys, which has been struggling in recent quarters amid
weakness in its tire business, has been spending to try to ignite
sales growth, including investments for new stores and for store
renovations.
Overall, Pep Boys reported a profit of $11.9 million, or 22
cents a share, up from $1.6 million, or three cents a share, a year
earlier. The latest period included $10 million from the sale of a
leasehold interest.
The Philadelphia-based company, which competes with larger
rivals AutoZone Inc. and Advance Auto Parts Inc., is being wooed by
potential buyers including private-equity firm Golden Gate Capital,
The Wall Street Journal reported last month.
Pep Boys has been searching for a new chief executive to succeed
Mike Odell, who resigned in September after six years at the helm.
Board member John Sweetwood has been filling the CEO post on an
interim basis.
Longtime shareholder Gamco Investors Inc., the firm founded and
headed by investor Mario Gabelli, has indicated it intends to
nominate six directors to the Pep Boys' nine-member board at its
annual meeting.
Write to Tess Stynes at tess.stynes@wsj.com
Access Investor Kit for Advance Auto Parts, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US00751Y1064
Access Investor Kit for AutoZone, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0533321024
Access Investor Kit for The Pep Boys-Manny Moe & Jack
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7132781094
Subscribe to WSJ: http://online.wsj.com?mod=djnwires