PHILADELPHIA – Pep Boys has announced its results for the 13 (third quarter) and 39 (nine months) weeks ended Nov. 1, 2014.
Sales for the 13 weeks ended Nov. 1 increased by $10.5 million, or 2.1 percent, to $517.6 million from $507 million for the 13 weeks ended Nov. 2, 2013.
Net loss for the third quarter of fiscal 2014 was $2 million (3 cents per share) as compared to net earnings of $1 million (2 cents per share), recorded in the third quarter of fiscal 2013. The 2014 results included, on a pre-tax basis, a $1.4 million asset impairment charge and $1.4 million in severance charges. The 2013 results included, on a pre-tax basis, a $2 million asset impairment charge and $0.6 million in severance charges.
Sales for the 39 weeks ended Nov. 1, increased by $11.3 million, or 0.7%, to $1,582.2 million from $1,570.8 million for the 39 weeks ended Nov. 2, 2013.
Net loss for the first nine months of 2014 was $0.6 million (1 cent per share), as compared to net earnings of $10.2 million (19 cents per share), for the first nine months of fiscal 2013. The 2014 results included, on a pre-tax basis, a $5.2 million asset impairment charge, a $4 million litigation charge and $2.4 million in severance charges. The 2013 results included, on a pre-tax basis, a $4.9 million asset impairment charge and $0.6 million in severance charges. In addition, the 2014 results included a $0.9 million tax expense related to valuation allowances.
“Our recent top-line growth has continued into the fourth quarter,” said interim CEO John Sweetwood. “Particular highlights are tires, commercial and eCommerce sales; however, this balance of business shift has continued to pressure gross margin rate.”
Sweetwood continued, “Our Road Ahead stores continue to produce positive results. Cincinnati and Denver will be completed in the fourth quarter, with grand re-openings scheduled for the first quarter of 2015. Baltimore, which will serve as our first test of a reduced average per-store investment, will be grand re-opened in the second quarter of 2015.
“We have engaged Spencer Stuart to conduct our CEO search, which is progressing as planned,” he concluded.
