Pep Boys Says Things Looking Up After Deal Falls Apart

http://blogs.wsj.com/deals/2012/06/06/pep-boys-says-things-looking-up-after-deal-falls-apart/

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.

 

 

 

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