Pep Boys 2Q Profit Up 42 Percent

Barely topping Wall Street expectations, Pep Boys has managed to post a second quarter profit that marks 42 percent increase over profits posted last quarter. However, the profit report comes alongside reports indicating that Pep Boys’ revenue has suffered due to falling sales of discretionary items.

Pep Boys shares have fallen 5.4 percent to $9.55 due to sales falling short of analyst expectations for the company, which places Pep Boys stock 10 percent below its one-year high two months ago but much higher than its $2.62 January low. The company is in the midst of a turnaround, one that has begun to really take effect this year.

So far, the recession has seemed to help Pep Boys, with people generally keeping cars longer and needing more repairs done, but the Cash for Clunkers may end up harming Pep Boys’ business for a while. Earnings are up from $5.45 million a year earlier to $7.73 million this year, while revenue fell 2.2 percent to $488.9 million.

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