Investors hammered Pep Boys (PBY) stock on Tuesday after the auto parts retailer reported disappointing fiscal fourth-quarter results.
PBY stock sank after the retailer announced it suffered a Q4 loss of 6 cents per share, which was worse than the 5-cent loss analysts expected. Meanwhile, revenues also were down, off 6.6% year-over-year at $495.7 million, which was well below Street expectations of $535 million.
Pep Boys CEO Mike Odell said in a statement that while pricing for tires has stabilized, they’re “still below last year’s level, which has and is expected to continue to negatively impact top line sales results through the second quarter of 2014.”
However, Odell touted growth in customer count, maintenance and repair sales, and tire units, noting the company’s “Road Ahead” strategy of sales driving service.
“Overall, sales from service appointments made online, tires purchased online and installed in our service bays, and products purchased online for store pick up or home delivery grew 152% in the fourth quarter.”
PBY operates about 800 locations across 35 U.S. states and Puerto Rico.
PBY stock was down roughly 15% as of this writing, and shares are off roughly the same amount for the year-to-date.
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