While AutoZone sees increase, PepBoys burdened with tough third-quarter losses
San Francisco, CA -- (SBWIRE) -- 01/14/2013 -- The the general recovery of the auto industry, many in the parts industry are beginning to feel the residual good vibes from the market.
The best-performing sectors of the last view years have been auto parts retailers. Instead of buying a new Ford or Toyota, consumers have been opting to repair their existing vehicle. That translates to money that would have been allocated to the investment capital for an entire vehicle, being instead compartmentalized into specific car parts as needed.
Wi the SAAR exciting 15.2 million units within November alone, it is clear that the fleet replacement is well within its tidal wave.
AutoZone reported first quarter results, wherein sales increase 3.5% in year-over-year to to $2 billion. That reaches the general number anticipated. Some stores, however, grew a piddly 0.2% over the year-to-year totals. Hurricane Sandy impacted sales within the Northeast, a large portion of weakness was within the Midwest. Housing finally began to recover, and the largest of the American automakers increased production. Thus, the Midwest economy was put into a recovery mode. Furthermore, the traditionally challenging weather conditions helped in accelerating the depreciation of vehicles within the area. That trend is destined to continue as long as the economy does not run into a brick wall.
Company boosted its gross margin to 70 points year-over-year. That marks it at a 51.8% increase, partially offset by the 20 basis point increase in the SG&A. Nevertheless, the total earnings per share jumped 16% to $5.41, which in turn boosts by higher operating margins and the firm's aggressive stock repurchase program.
The search for growth continues as purchasing parts online at retailers like AutoAnything. Its effect on retail stores like AutoZone is still essentially unknown.
Pep Boys exposes an exaggerated established weakness, as sales dropped 2.4% year-over-year for its third quarter totals. The sales drop for the company came on the service side, which ticked to 0.2% on the comparable basis.
While the company lost $0.13 per share during the third quarter, adjusted earnings were generally strong.
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