PHILADELPHIA — The Pep Boys has announced results for the fourth quarter and fiscal year ended Jan. 29.

Sales for the fourth quarter of fiscal 2010 increased by $24.5 million, or 5.4 percent, to $477.4 million from $452.9 million for the fourth quarter of fiscal 2009. Comparable store sales increased 4.3 percent, consisting of a 3.4 percent comparable store service revenue increase and a 4.6 percent comparable store merchandise sales increase, the company said.

Net earnings for the fourth quarter of fiscal 2010 more than tripled to $8.4 million (16 cents per share) from the $2.3 million (4 cents per share) recorded in the same period last year. Net earnings for the fourth quarter of fiscal 2010 include a $1 million tax benefit, while the same period last year included a $1.2 million tax benefit.

Sales for fiscal year 2010 were $1,988.6 million, as compared to $1,910.9 million for fiscal 2009. Fiscal year 2010 comparable store sales increased 2.7 percent, consisting of increases of 1.1 percent in comparable store service revenue and 3.1 percent in comparable store merchandise sales.

Net earnings for fiscal year 2010 increased to $36.6 million (69 cents per share) from the $23 million (44 cents per share) recorded in fiscal year 2009. The 2010 results included a $2.1 million tax benefit, while the 2009 results included a $1.2 million tax benefit. Earnings from continuing operations before taxes for fiscal year 2010 increased 55 percent to $58.4 million from the $37.6 million recorded in the prior year. The fiscal 2010 results include a net benefit of $8.4 million comprised of a $5.9 million reduction in the reserve for excess inventory, a $2.5 million gain from the disposition of assets and a $1.0 million reversal of an inventory related accrual, partially offset by a $1.0 million asset impairment charge. The fiscal 2009 results included a net benefit of $7.0 million, consisting of a $6.2 million gain from bond repurchases, a $1.2 million gain from sale leaseback transactions, a $2.0 million reduction in inventory-related accruals and a $0.7 million gain from an insurance settlement, partially offset by a $3.1 million asset impairment charge.

“For the past three years, we have focused on earning the trust of our customers, becoming the preferred employer in the automotive aftermarket and building a profitable and sustainable business model,” said President and CEO Mike Odell. “This fourth quarter caps off a successful 2010, as evidenced by our comparable store sales growth, expanding operating margins and new store growth. We expect to continue this trend in 2011, despite the uncertain macro-environment. Every day we wake up charged to execute our vision to be the automotive solutions provider of choice for the value-oriented customer.”

“We opened 35 new locations in 2010 – 28 Service & Tire Centers and seven Supercenters,” Odell continued. “That’s on top of 25 new stores in 2009. Our growth will continue to accelerate in 2011, as we have targeted opening 50 new Service & Tire Centers and five Supercenters.”

“We continued to build cash in 2010, ending the year with over $90 million, which is $50 million more than last year,” added CFO Ray Arthur. “Our greatly improved operating results are providing the funding for our growth strategy.”