Pep Boys gets run over by low tire prices
The auto-parts retailer sees shares plunge 15% after reporting a bleak quarter.
By Christopher Freeburn
Investors hammered Pep Boys (PBY) stock on Tuesday after the auto-parts retailer reported disappointing fiscal fourth-quarter results.
Shares sank after the retailer announced it suffered a loss of 6 cents per share, which was worse than the 5-cent loss analysts expected. Revenue also was down, off 6.6 percent from a year earlier at $495.7 million, which was well below Street expectations of $535 million.
CEO Mike Odell said in a statement that while pricing for tires has stabilized, they're "still below last year's level, which has and is expected to continue to negatively impact top line sales results through the second quarter of 2014."
However, Odell touted growth in customer count, maintenance and repair sales, and tire units, noting the company's "Road Ahead" strategy of sales driving service.
"Overall, sales from service appointments made online, tires purchased online and installed in our service bays, and products purchased online for store pick up or home delivery grew 152 percent in the fourth quarter."
Pep Boys operates about 800 locations across 35 U.S. states and Puerto Rico.
PBY was down roughly 15 percent in midday trading Tuesday, and shares were off roughly the same amount for the year.
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last time I went to Pep Boys the place was overrun with mexicans. It made me want to call ICE
...although I knew what good that would do
Typically, I hit Autozone first, then O'reilly, Advance, Pepboys, Advanced, then Napa in that order. Advanced used to be higher on my list until I replaced a power steering pump the went out in 3 months. Found out it only had a 3 month warranty and it cost $300 to put it on. So now I have to buy a new pump and either pay another $300 to put it on or do it myself. I usually do 99% of vehicle maintenance myself but this pump just happens to be the biggest PITA to get to and have to disassemble half the car to get to it. Until I can devote a weekend to it I've been driving around without PS or AC (same belt driven). My rant is more about Advanced warranties over the stores themselves.
Pepboys would be higher on my list but all the others are grouped together on my way home from work so they are easier to stop in. I have to go out of my way to go to pepboys. I'll only go there if they are the only ones with a part in stock.
Anyone know how much their Revenue was down YOY quarter or 4th. Quarter reporting..?
Percentage or $ dollar amounts from expectations..?
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