PBY announced today that during its first five weeks of its first quarter,the company is on sales parody with its first five weeks of last year's first quarter.They also indicated that 4th quarter sales would be $466 million or $6 million above analyst expectations. The good news so far, is PBY's first quarter is slated to show huge sequential revenue growth from its 4th quarter results. If the company keeps the same sales trends it experienced thru its first five weeks for the balance of the quarter, it will record sales of $518 million for a very impressive 12% sales gain.PBY is also cutting its cash dividend to .03 per quarter which is a very good thing as they can put the dividend savings to more pressing issues such as reducing debt. PBY also announced it has purchased three repair only service facilities, two in California and one in PA. These repair facilities are intended to act as spokes to PBY's Hub.
########### Company-wide sales trends have greatly improved from the 10.1% decline we experienced in the fourth quarter of fiscal 2008 to flat sales in the first five weeks of fiscal 2009 versus the same period last year. The Company is experiencing positive sales comparisons year on year in both its service and commercial businesses, particularly in the Northeast. Sales trends in the retail business have also improved, but are still running single-digit declines due to reduced customer demand in our discretionary categories. During the third and fourth weeks of February, Pep Boys launched new TV and radio ads focused on tires and oil changes, and experienced significant sales increases in its service business during the promotion.
“Our new marketing program is driving customers in, and our store associates are embracing our ‘customer first’ culture by delivering fast, expert service, every time, to keep them coming back,” remarked Mike Odell.
Furthering this focus on service, Pep Boys expects to open its first three service “spokes” by the end of the second quarter. These service-only facilities will be located in Ventura, CA; East Puente Hills, CA; and Bridgeport, PA.
In addition, the Company has previously announced the completion of a new $300 million senior secured revolving credit facility to support Pep Boys' operations and growth. ############