PBY

Surveying Results at the Auto Parts Retailers

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Monday was a day auto-parts retailer Pep Boys (PBY) would rather soon forget. The company reported fiscal third-quarter results (ending November 2013) that came up short with consensus expectations. Comparable same-store sales at the automotive retail chain declined 2.8% (well below its targets for low-single-digit expansion), consisting of a 0.5% comparable service revenue increase and a 3.6% comparable merchandise sales decrease. The firm swung to a modest quarterly net profit during the period, but its nine-month diluted earnings per share profit of $0.19 was significantly worse than the $0.51 per share profit recorded in the prior-year period. Same-store sales are decelerating as the quarterly mark (-2.8%) is materially worse than the nine-month tally, which was -1%. Through the first nine-months of … Read more

Auto Parts Retailers Feeling the Auto Recovery

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With the auto recovery in full swing, we’re starting to see a momentum swing from one of the best performing sectors of the past few years, the auto parts retailers. Instead of buying a new Ford (click ticker for report: ) or Toyota (click ticker for report: ), which require heavy capital investments, consumers have opted to repair their cars (whether at an auto shop or by themselves) instead of purchasing a new one. But, with the SAAR exceeding 15.2 million units in November, it’s clear that the fleet replacement is in full swing, in our view. AutoZone (click ticker for report: ) reported first quarter results Tuesday morning. Overall sales increased 3.5% year-over-year to $2 billion, which was roughly … Read more