Pep Boys posted a net loss of $27.3 million for its fiscal year 2014, which ended Jan. 31. That compares to a $6.9 million net earnings for the 2013 fiscal year.
The results for 2014 included a $23.9 million goodwill impairment charge, a $7.5 million assets impairment charge, as well as 4.0 million in litigation expense and $2.9 million in severance, partially offset by a $13.8 million gain from the disposition of certain properties, the company said.
Sales for 2014 were up .09% to from $2,066.6 in 2013 to $2,084.6 million in 2014, the company reported. However, gross profit from service sales was down year over year, while gross profit from retail sales was up.
“The fourth quarter was a time of transition for the company,” said interim CEO John Sweetwood. “We continued to increase our sales in the growing service segment. Our investments in the high-growth areas of our business – commercial, tires, fleet and digital – increased revenue, but temporarily depressed margins. To date in the first quarter, we have generated higher sales and experienced recovering margins.”
Pep Boys operates more than 806 locations across the U.S.