Pep Boys Reports Tough First Quarter But Sees Improvement Ahead

Auto parts chain The Pep Boys reported a tough first quarter with earnings more than half what they were a year earlier. Over the three months to April, the company earned 3 cents a share, gapping from profits of 7 cents a share last year and missing analysts' estimates for EPS of 6 cents. On its top line, sales climbed 0.5% to just under $540 million from $536.2 million a year earlier. Comparable sales declined 1.4%, dragged on by a 2.8% dip in merchandise sales. Despite a challenging start to the year, CEO Mike Odell notes comparable sales have returned to positive growth in the first five weeks of the second year.