Pep Boys Sees Income, Revenue Grow in 2Q

Pep Boys reported its second quarter net income increased nearly 32%, while its revenue rose just 3.5% to $523 million, less than analysts’ predicted $529 million.

The Philadelphia-based company earned $13.9 million for the second quarter ended July 30, up from $10.6 million in the same period in 2010. Pep Boys’ 2010 sales for the second quarter were $504.9 million.

First half sales increased by $21.2 million, or 2.1%, from 2010 levels.

President and CEO Mike Odell said the company is battling high gas prices and depressed consumer confidence
“Our maintenance and repair services remain stable, allowing us to mostly offset soft tire sales. Our experience has taught us that customers can only defer their tire purchases for so long, so we have continued our aggressive ‘surround sound’ promotional activity to ensure that Pep Boys remains top of mind for tire customers,” he said.

Helping the company’s bottom line are recent Service & Tire Center acquisitions, including Big 10 Tires and Automotive in Florida, Georgia and Alabama.

"In their first full quarter of operations under Pep Boys, the 85 Big 10 stores were accretive to earnings,” Odell said. “And our organic Service & Tire Center sales continue to ramp up along their three-year maturity curve. As they achieve this maturity, they will also begin to contribute to earnings."

Founded in 1921, Pep Boys has more than 700 locations in 35 states and Puerto Rico.

Ascot Supply Corporation, based in Newnan, Georgia, has selected Mark Paquette for the newly created position of vice president. In this position, Ascot Supply said Paquette will oversee the growth of the company's products, corporate profitability, manage marketing and advertising and assume many other responsibilities.

He will work under the direction of current President David Kessler and officially begin his new role on June 3. Paquette joined the tire and automotive industry in the early 1980s at his father's tire shop, and his contributions to Mohawk Rubber Sales were instrumental in the company's growth and eventual sale to Myers Tire Supply in 2021, according to Ascot Supply. Paquette eventually was given a promotion to the role of director of operations at Myers Tire Supply.