There may not be much pep in the step of some employees at Pep Boys Manny, Moe & Jack this morning. Late last evening, the automotive retailer announced that it is closing 31 stores and is laying off 550 workers as part of a restructuring plan. This announcement accompanied the firm's report that its third-quarter loss widened to $21.7 million, or 42 cents per share. A year ago, the retailer lost $10.7 million, or 20 cents per share. Revenue for the quarter dropped 2.8% to $535.4 million, falling short of expectations for $539 million.
Now, the job cuts. The automotive parts supplier noted that the moves are being made to support the investment needed for Pep Boys' revitalization. The 31 stores that are being shuttered are considered low return and represent roughly 5% of PBY's total. The 550 employees that are losing their jobs represent roughly 3% of the company's total work force. Despite the firm's recent technical struggles, PBY's Schaeffer's put/call open interest ratio of 0.33 is at its lowest point of the past year.