Group 1 Automotive, Inc. (NYSE:GPI) CEO Earl Hesterberg said the auto retailer will close underperforming stores going forward. The firm plans to incur between $10 million and $15 million in closing and related costs during 2008. Hesterberg made the comments during a morning conference call.

Along with negatively impacting sales, the CEO said the auto industry’s slowdown has hurt the firm’s inventory levels. New vehicle inventory grew to 71 days’ supply from 63 days a year earlier.

“We need to reduce our truck inventory in the second quarter,” Hesterberg said.

The Houston-based company announced before Tuesday’s opening that its first-quarter net income slipped to $16.4 million, or $0.73 per share, compared with $17.5 million, or $0.72 per share, a year earlier. Wall Street analysts anticipated earnings of $0.68 per share.

Quarterly revenue increased slightly to $1.53 billion, compared with $1.52 billion a year earlier. The revenue results also beat Wall Street’s expectation of . . .

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