Pep Boys

Pep Boys (PBY 8.42) posted a higher first quarter profit despite lower sales as the company was able to reduce expenses.

Pep Boys reported first quarter earnings of $0.21 per share.  The results include a $6.2 million gain resulting from bond repurchases and may not be comparable to the First Call consensus of $0.07.  Net earnings for the quarter increased to $10.9 million from $4.7 million in the same period the prior year.

Revenues slipped 3% year-over-year to $496.5 million, in-line with the $495.6 million consensus.

Same-store sales decreased 0.3% in the quarter, including a 1.3% merchandise sales decrease and a 3.8% service revenue increase.

Pep Boys said it reduced its selling, general and administrative expenses by 210 basis points in the quarter.

Shares of PBY have more than doubled year-to-date.