Pep Boys-Manny Moe & Jack is not taking its breakup too hard.
- Wall Street Journal
While its first-quarter results were in-line with last month’s disappointing preliminary report, the company says the disappointment is only somewhat temporary.
CEO Mike Odell says the third and fourth quarters will return to year-over-year profit growth, adding the company has made changes after “not clicking on all cylinders” to start the year.
Pep Boys has blamed a “mild winter” and slow customer spending for its weak results so far,
The auto-parts retailer broke-off its deal with Gores Group last week after the private-equity firm raised questions about the results and threatened to walk away.
Odell adds that Pep Boys is “in the best financial position in over a decade” and will open about 40 new stores this year. The company plans to use cash, including the $50 million it collected from Gores Group, to pay down debt, but cannot at this point repurchase shares.