Shares of Pep Boys _ Manny, Moe & Jack tumbled Tuesday after the auto parts retailer reported a 29 percent jump in fiscal second-quarter profit, but its sales missed Wall Street predictions.
Pep Boys shares dropped $2.36, or 25 percent, to $6.91. Over the past 52 weeks, the company's shares have traded between $6.40 and $16.75.
Analyst David A. Schick of Stifel Nicolaus & Co. said that while the company continues to make progress on its turnaround program, its second quarter sales slowed sequentially despite expected benefits from stimulus checks.
"We continue to believe Pep Boys is pursuing the right initiatives to better position the company long term and has added experienced senior management members in the last year," Schick wrote in a note to investors.
"The focus on automotive service gives the best chance for success, in our view," he added
Pep Boys said late Monday that it posted a profit of 10 cents per share, boosted by a $2.2 million tax benefit and a $4.1 million gain on the sale of assets.
Sales fell 9 percent to $500 million, while analysts polled by Thomson Reuters expected $515.3 million. Same-store sales _ or sales at stores open at least a year _ dropped 7.5 percent from the same quarter last year.
The company attributed the sales decline to a general pullback in consumer spending and disruption related to a shift in its product focus.
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