Pep Boys Reports Lower Fourth Quarter Results But Higher Fiscal Year Returns.

The Pep Boys - Manny, Moe & Jack said sales for the thirteen weeks ended February 1, 2003, were $482.8 million, 5 percent less than the $508,.5 million recorded last year. Comparable store sales, which were negatively impacted by a 12.5 percent decline in comparable tire sales, declined 5.2 percent.

Improved merchandise and service center margins and effective expense control did not offset the decline in sales. As a result, the Company reported comparable net earnings of $1,470,000 ($.03 per share basic and diluted) as compared to $5,615,000 ($.11 per share basic and diluted).

Sales for the fiscal year ended February 1, 2003 were $2.17 billion, 0.6 percent less than the $2.18 billion recorded last year. Comparable store sales declined 0.7 percent. An improvement in merchandise and service center margins as well as effective expense control more than offset the 0.7 percent decline in comparable store sales. As a result, comparable net earnings were $48.7million ($.95 per share basic and $.90 per share diluted), 26 percent greater than the $38.7 million ($.75 per share basic and $.74 per share diluted) that was earned last year.