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PEP BOYS' THIRD QUARTER EARNINGS INCREASE 18 PERCENT

 PHILADELPHIA, Nov. 18 /PRNewswire/ -- Pep Boys -- Manny, Moe & Jack (NYSE: PBY), the nation's leading automotive aftermarket retail chain, today announced record sales and earnings for the 13 weeks ended Oct. 30, 1993.
 OPERATING RESULTS
 -- Third Quarter
 Earnings for the period, which were adversely impacted by a $537,000 ($.01 per share) increase in the federal tax provision resulting from an increase in the corporate income tax rate, were $17,443,000, an 18 percent increase over the $14,755,000 that was achieved last year. Earnings per share were $.28, a 17 percent increase over the $.24 that was recorded last year.
 Sales for the quarter ended Oct. 30, 1993, rose to a record $316,015,000, 6 percent greater than the $298,809,000 that was recorded last year. Comparable store sales for the quarter decreased 1 percent.
 -- Nine Months
 Earnings for the nine-month period were $49,987,000, 18 percent greater than the $42,256,000 that was earned last year. Earnings per share were $.81, a 16 percent increase over the $.70 that was achieved last year.
 Sales for the nine months ended Oct. 30, 1993, rose to a record $944,308,000, 7 percent greater than the $883,583,000 recorded last year. Comparable store sales were unchanged during the first 39 weeks of the fiscal year.
 STORE EXPANSION PROGRAM
 Eleven warehouse format automotive supercenters were opened during the third quarter including the company's first units in Springfield, Mo., Bel Air, Md., West Warwick, R.I., and West Springfield, Mass. In addition, two new supercenters were opened in Miami, while additional units were added in Ft. Lauderdale, Fla., and Syracuse, N.Y. Full service facilities were opened in Orange, Calif., Lake Forest, Calif., and Long Beach, Calif., all of which replaced outmoded, non-service stores that were closed during the quarter. A fourth non-service store in Southern California, which was closed during the quarter, will be replaced by an 11-bay supercenter early next year.
 Pep Boys anticipates opening as many as 22 warehouse format automotive supercenters during the fourth quarter, including its initial units in Illinois, Indiana, and Houston. If all stores open as scheduled, Pep Boys will operate 386 stores in 28 states by the end of the current fiscal year.
 COMMENTARY
 Pep Boys' CEO, Mitchell G. Leibovitz, made the following comments:
 "As was the case during the first and second quarter, higher gross margins resulting from shifts in our sales mix coupled with solid expense control helped to compensate for below-budget sales caused, in part, by significantly lower freon sales, especially during August and September, as well as weak tire sales.
 "Our ability to generate an 18 percent increase in earnings despite the negative impact on segments of our business resulting from the weak


economy as well as the challenging 37 percent prior year comparison is a tribute to the dedication of the entire Pep Boys team.
 "We continue to be extremely pleased by the sales being generated by our non-comparable stores. As a group, these 38 new units, all of which feature our warehouse format, are achieving average first year sales that are essentially equivalent to the average volume of the balance of our chain. Given the success of these units, their rapid ramp to profitability as well as exciting market opportunities, the company hopes to open approximately 55 eleven-bay, warehouse format supercenters in 1994."
 PEP BOYS
 Financial Highlights
 Thirteen weeks ended Oct. 30, 1993 1992
 Total Revenues $ 316,015,000 $ 298,809,000
 Net Earnings $ 17,443,000 $ 14,755,000
 Avg. Shares Outstanding 61,977,000 61,730,000
 Earnings Per Share $ .28 $ .24
 Thirty-nine weeks ended Oct. 30, 1993 1992
 Total Revenues $ 944,308,000 $ 883,583,000
 Net Earnings $ 49,987,000 $ 42,256,000
 Avg. Shares Outstanding 61,904,000 60,304,000
 Earnings Per Share $ .81 $ .70
 /delval/
 -0- 11/18/93 R
 /CONTACT: Michael J. Holden, senior vp-finance and treasurer of Pep Boys, 215-227-9202/
 (PBY)


CO: Pep Boys -- Manny, Moe & Jack ST: Pennsylvania IN: REA SU: ERN

OP -- PH042R -- 6324 11/18/93 18:34 EST
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Publication:PR Newswire
Date:Nov 18, 1993
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