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Pep Boys shares tumble on earnings report

Shares of Pep Boys - Manny, Moe & Jack plummeted 8.9 percent Tuesday afternoon after the auto store said second-quarter per-share earnings fell to zero, from 10 cents per share in the year-ago period.

Statue of Manny, Moe & Jack outside outside Pep Boys offices at 3111 West Allegheny Ave. in Philadelphia January 30, 2012. ( TOM GRALISH / Staff Photographer )
Statue of Manny, Moe & Jack outside outside Pep Boys offices at 3111 West Allegheny Ave. in Philadelphia January 30, 2012. ( TOM GRALISH / Staff Photographer )Read more

Shares of Pep Boys - Manny, Moe & Jack plummeted 8.9 percent Tuesday afternoon after the auto store said second-quarter per-share earnings fell to zero, from 10 cents per share in the year-ago period.

Net profit was $0.3 million in the thirteen weeks ended Aug. 2 on sales of $525.8 million, compared with a net of $5.4 million on sales of $527.6 million in the same quarter of 2013.

Sales in stores open at least one year decreased 1.8 percent - consisting of an increase of 5.4 percent in comparable service revenue and a decrease of 3.8 percent in comparable merchandise sales.

CEO Mike Odell said in a prepared statement that the company is developing a plan to reduce expenses by $25 million, and seeks to close stores "that do not justify their expense burden."

Shares were down $1.02, to $10.39 at midafternoon. - Reid Kanaley