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Pep Boys


swung to a second-quarter loss, due to charges from its nearly three-year restructuring initiative.

The company said late Wednesday that it lost $36.4 million, or 70 cents a share, in the quarter ended Aug. 2, compared with earnings of $16.6 million, or 30 cents a share, last year. Excluding certain after-tax charges associated with the restructuring program, the company earned $16.85 million, or 31 cents a share, flat with last year's $16.87 million, or 31 cents a share. Analysts were expecting 30 cents a share.

Sales during the quarter were $556 million, excluding some closed stores, down 1.7% from last year's $565.6 million. Same-store sales fell 1.6%.

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"I am pleased that our comparable-store sales performance has improved vs. the first quarter, but we still have a long way to go," said Chief Executive Larry Stevenson.

On July 31, the company said it closed 33 underperforming stores, discontinued certain merchandising offerings and cut 160 positions. As a result, Pep Boys expects an annual after-tax operating expense reduction of about $6.93 million and expects to receive about $29.7 million in proceeds from the sale of assets.

Shares of the Philadelphia-based auto-parts chain closed at $14.80 Wednesday on the

New York Stock Exchange