Tom Reese/Paul Rubillo, Dividend.com
Pep Boys (PBY) may be facing another tough day today, as the company’s quarterly sales number came in below analyst expectations. Revenues were down 9 percent, to $500 million, below expectations of $515 million.
Management is blaming the the general pullback in consumer spending for the sales shortfall. The company does believe they are making progress in their efforts to transform its sales floors, in an effort to become the dominant solutions provider for the automotive aftermarket customer.
The Bottom Line
Management should examine the strategies of its competitor Advanced Auto Parts (AAP), a company that is knocking their sales numbers out out of the park. We recommend investors focus on AAP if they want to gain exposure to this part of the retail sector. Pep Boys has a dividend yield of 2.91%, based on last night’s closing stock price of $9.27.
Pep Boys (PBY) is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.1 out of 5 stars.
