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Pep Boys - Manny, Moe & Jack Message Board

  • bluebloodedtrader bluebloodedtrader Mar 9, 2009 8:45 AM Flag

    4th Quarter earnings

    Earnings will likely be horrible next month, but this fact, and probably much more has already been discounted into the share price. The company will be utilzing comps that did present a poor gross profit margin (4th Q of last year was when they liquidated their discontiued inventory at cost) so expect a nice improvement in gross profit margin of at least 200 basis points.The service segment should also show improvement as more consumers are faced with getting their vehicles repaired due to deffered maint they can no longer put off ( bald tires, etc) and the employees will have more spring in their step since 40% of their pay will be based on performance, due to PBY's recently adopted incentive pay plan. Workers will try much harder to sell when their pay is tied to it--about time.Look for sales of $450 million to be reported and eps of -.08 when fourth Q is reported.

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    • Blue is pumping this stock so it can sell. This is your typical hype so there are plenty of greater fools to distibute your shares to.

      Since when is unannounced sales performance built into a stock price?
      Do you mean no one expects pep boys to ever increase revenue? You may me correct there.

      Pep has 3 lines of business which one these are increasing revenues?
      DIY (Retail)
      DIFM (service)
      Pepx (commercial)
      Why do all three lines of business decline in revenue year after year? It cant be the clearance merchandise thats just retail and that was Nov 2007.

      Advance, Autozone are retail with no service sales- revenue has increased steadily.
      Why do we keep hearing reasons why Pep boys does not increase revenue? We only hear that they will cut costs (payroll)
      That does not sound like the behavior of a leading company. It sounds like a losing company. Who cuts payroll when they expect revenue to increase like their competitors, maybe they dont believe they hype?

      Explain this performance tied to compensation plan?
      What exactly are you referring to? Are you saying employees will be paid more by "finding more broken things under my hood" and then charging me for them? Really....

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