PHILADELPHIA – Pep Boys has announced results for the 13 (second quarter) and 26 (first half) weeks ended July 28, 2012.
Sales for the 13 weeks ended July 28 increased by $3.1 million, or 0.6 percent, to $525.7 million from $522.6 million for the 13 weeks ended July 30, 2011. Net earnings for the second quarter of fiscal 2012 increased to $33 million (61 cents per share) from $13.9 million (26 cents per share) recorded in the same period last year.
Sales for the 26 weeks (first half) ended July 30 increased by $14.1 million, or 1.4 percent, to $1,050.3 million from $1,036.1 million for the 26 weeks ended July 30, 2011. Net earnings for the first half of 2012 increased to $34.1 million (63 cents per share) from the $26.3 million (49 cents per share) recorded in the same period last year.
“We continue to be rewarded by our strategy to lead with our service business, which grew 3.8 percent on a comparable store sales basis and experienced an impressive 7.8 percent customer count increase,” said President and CEO Mike Odell. “A strong July, particularly in our service business, allowed us to record flat comparable sales during the quarter. While industry fundamentals remain solid over the long term, with consistent demand for maintenance and repair services, short-term headwinds, including the recent spike in gas prices, continue to challenge consumer spending relative to discretionary and deferrable purchases. To combat these headwinds, we continue to make it easy for customers to choose us to do it for them and to expand our online efforts to make Pep Boys the most convenient place to shop for all of their automotive needs.
“In the coming weeks, we expect to begin marketing a debt refinancing," Odell added. "Our intention is to reduce our overall long-term debt by approximately $100 million, settle our interest rate swap, extend our maturities and reduce our overall interest expense, while maintaining flexibility for accelerated growth and/or returning capital to our shareholders.”
Executive Appointments
Pep Boys also announced the appointment of David Stern as CFO and the departure of William Shull III, former executive vice president – stores. Stern joins Thomas Carey, recently appointed chief customer officer, as the newest member of Pep Boys’ executive leadership team. Store operations have been reorganized into East and West territories under the leadership of Terence Winslow and Sean Chidsey. Winslow and Chidsey will report directly to Odell, while a search is conducted for a senior vice president – store operations.
