PHILADELPHIA — Pep Boys has announced results for the second quarter (13 weeks) and first half (26 weeks), ended July 30.
Sales for the 13 weeks ended July 30 increased by $17.7 million, or 3.5 percent, to $522.6 million from $504.9 million for the 13 weeks ended July 31, 2010. Comparable sales decreased 2 percent, including a 0.3 percent comparable service revenue increase and a 2.5 percent comparable merchandise sales decrease. In accordance with GAAP, service revenue is limited to labor sales, while merchandise sales include merchandise sold through both our service center and retail lines of business. Re-categorizing sales into the respective lines of business from which they are generated, comparable service center revenue (labor plus installed merchandise and tires) decreased 0.7 percent, while comparable retail sales (DIY and Commercial) decreased 3.1 percent.
Net earnings for the second quarter of fiscal 2011 increased to $13.9 million (26 cents per share) from $10.6 million (20 cents per share) recorded in the same period last year. The 2011 results include, on a pre-tax basis, a $0.4 million asset impairment charge and $1 million of acquisition related expenses and benefitted from the release of $3.4 million of state tax valuation allowances. The 2010 results included, on a pre-tax basis, a $2.4 million gain from the disposition of assets and a $1 million reversal of an inventory related accrual, partially offset by a $1 million asset impairment charge.
Sales for the 26 weeks ended July 30 increased by $21.2 million, or 2.1 percent, to $1,036.1 million from $1,014.9 million for the 26 weeks ended July 31, 2010.
