Pep Boys Announces Record Q2 Sales

6 August 1998

Pep Boys Announces Record Sales and Provides Earnings Guidance for Second Quarter

    PHILADELPHIA--Aug. 6, 1998--The Pep Boys - Manny, Moe & Jack , the nation's leading automotive aftermarket retail and service chain, announced record sales and earnings guidance for the thirteen weeks ended Aug. 1, 1998.

Second Quarter Sales
    Sales for the quarter ended Aug. 1, 1998, rose to a record $635,301,000, 17.8% greater than the $539,298,000 recorded last year. Service labor revenue, exclusive of installed product, climbed to a record $104,357,000, 20.5% greater than the $86,601,000 recorded last year.
    Comparable store sales increased 6.8% during the quarter while comparable service labor revenue and comparable tire sales increased 9.7% and 15.5%, respectively. Service labor revenue, exclusive of installed product, and tires accounted for 16.4% and 13.9%, respectively, of total sales.

Earnings
    Earnings for the thirteen weeks ended Aug. 1, 1998, which the Company anticipates will be $.29-$.30 per share, will be released on Aug. 13, 1998.

Commentary
    Pep Boys' CEO, Mitchell G. Leibovitz, made the following comments:

    "Although we got off to a slow start in the second quarter, sales picked up in July and we finished the month with a 9.0% increase in comparable store sales. We are hopeful that the recent completion of our commercial delivery rollout, key personnel changes in store operations and a new advertising campaign will enable us to achieve double-digit comparable store sales increases during the second half of the year as we build momentum for 1999."

Pep Boys
Revenue Highlights


                            Thirteen          Thirteen
                           Weeks Ended       Weeks Ended
                           Aug. 1, 1998      Aug. 2, 1997   % Change

Merchandise Revenues       $530,944,000      $452,697,000    + 17.3
Service Revenues           $104,357,000      $ 86,601,000    + 20.5
Total Revenues             $635,301,000      $539,298,000    + 17.8


Comparable Store Sales
  Merchandise                       6.2%             (1.3)%
  Tires (included in Merchandise)  15.5              12.9   
 Service                            9.7              10.3
 Total                              6.8%              0.4%

Note: Certain statements made herein are forward-looking and as a result involve risks and uncertainties. Actual results could differ materially from expected results due to factors beyond the control of the Company, including the strength of the national and regional economies and consumers' ability to spend, the health of various segments of the market that the Company serves-particularly the do-it-yourself segment, the weather in geographical regions with a high concentration of the Company's stores, competitive pricing, location and number of competitors' stores, product costs, the ability to attract and retain qualified personnel, the ability to acquire real estate, facilities and equipment and the ability to reduce inventory levels during 1998. Further risk factors are discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K, a copy of which may be obtained from the Company without charge.