Pep Boys’ 1Q sales down, profits up

First-quarter sales at Pep Boys - Manny, Moe and Jack were down, but profits were up, boosted by a $5.5 million gain from sale-leaseback transactions.

Comparable store sales - results from stores open at least a year - were down 5.6 percent, with particular sluggishness in the merchandise offering by the Philadelphia automotive parts, accessories and service business.

First quarter sales dropped to $498 million from $539.6 million the prior first quarter.

Net earnings increased to $4.7 million or 9 cents a diluted share, up from $3.2 million, or 6 cents per diluted share, in the first quarter of 2007. Pep Boys operates 560 stores and 6,000 service bays.

Shares were priced at $9.42 in late-morning Nasdaq trading, up $0.69 (7.90 percent). In the last 52 weeks, the share price has ranged from $8.25 to $22.49.