Pantry Profit Soars on Lower Oil Prices

Sanford, N.C. The Pantry Inc. said Tuesday its fiscal first-quarter results rose sharply, mainly due to lower oil and gas prices which boosted the company's gasoline gross margin, but revenue dropped 18%.

Profit for the quarter ended Dec. 25 climbed to $39.4 million, from $3.2 million in the same quarter last year. However, revenue fell to $1.63 billion from $1.98 billion.

Same-store sales fell 3%, excluding gas.

"The current retail environment remains very challenging and we are taking action in a variety of areas to further reduce operating expenses and to strengthen our merchandise gross margins," said chairman and chief executive Peter J. Sodini in a statement.