Pep Boys Announces Third Quarter EPS

PHILADELPHIA--Nov. 1, 20032, 2003--The Pep Boys - Manny, Moe and Jack , the nation's leading full-service automotive aftermarket chain, announced the following results for the thirteen weeks ended November 1, 2003.

Pep Boys Chief Executive Officer, Larry Stevenson, commented, "This was our first positive comp sales quarter in some time and we are pleased that we have built some momentum on the top line. Much remains to be done, but the combination of exciting new products and aggressive advertising will help us build on the positive sales trend."

Operating Results

Third Quarter

Sales

Sales for the quarter ended November 1, 2003, were $537,691,000, 2.2% more than the $526,298,000 recorded last year. Comparable sales increased 2.2%, including an increase of 2.5% in comparable store merchandise sales (retail and commercial) and an increase of 1.7% in comparable service bay revenues (service labor, installed merchandise and tires).

Earnings

Net earnings, including earnings from discontinued operations, of $14,700,000 ($.28 per share - basic and $.26 per share - diluted), declined from the $15,515,000 ($.30 per share - basic and $.28 per share - diluted) recorded last year.

Nine Months

Sales

Sales for the nine months ended November 1, 2003, were $1,604,631,000, 1.7% less than the $1,631,584,000 recorded last year. Comparable sales declined 1.7% including a decline of 2.0% in comparable store merchandise sales (retail and commercial) and a decline of 1.4% in comparable service bay revenues (service labor, installed merchandise and tires).

Earnings

Net earnings, including earnings from discontinued operations and cumulative effect of change in accounting principles, declined from the $45,634,000 ($.89 per share - basic and $.84 per share - diluted) to a loss of $30,898,000 ($.59 per share - basic and diluted), which includes the impact of its corporate restructuring and other actions that were announced on July 31, 2003.

                     Pep Boys Financial Highlights

Thirteen Weeks Ended:                November 1, 2003 November 2, 2002
---------------------                ---------------- ----------------

Total Revenues                          $537,691,000    $526,298,000

Net Earnings From Continuing 
  Operations Before Cumulative Effect 
  Of Change in Accounting Principle      $13,406,000     $15,419,000

Net Earnings                             $14,700,000     $15,515,000

Average Shares - Diluted                  60,410,000      59,084,000

Basic Earnings Per Share From 
  Continuing Operations Before 
  Cumulative Effect of Change in 
  Accounting Principle                         $0.26           $0.30

Diluted Earnings Per Share From 
  Continuing Operations Before 
  Cumulative Effect of Change in 
  Accounting Principle                         $0.24           $0.28

Basic Earnings Per Share                       $0.28           $0.30

Diluted Earnings Per Share                     $0.26           $0.28


Thirty-Nine Weeks Ended:             November 1, 2003 November 2, 2002
------------------------             ---------------- ----------------

Total Revenues                        $1,604,631,000  $1,631,584,000

Net (Loss) Earnings From Continuing
  Operations Before Cumulative Effect
  Of Change in Accounting Principle      $(7,500,000)    $44,618,000

Net (Loss) Earnings                     $(30,898,000)    $45,634,000

Average Shares - Diluted                  52,002,000      56,587,000

Basic (Loss) Earnings Per Share From
  Continuing Operations Before 
  Cumulative Effect of Change In 
  Accounting Principle                        $(0.14)          $0.87

Diluted (Loss) Earnings Per Share From
  Continuing Operations Before 
  Cumulative Effect of Change In 
  Accounting Principle                        $(0.14)          $0.82

Basic (Loss) Earnings Per Share               $(0.59)          $0.89

Diluted (Loss) Earnings Per Share             $(0.59)          $0.84