RadioShack announces plans to close as many as 1,100 locations amid sales slump, leaving about 4,000 US locations, including 900 dealer franchise locations

, March 4, 2014 (press release) – RadioShack Corp. slumped as much as 28 percent in early trading after the electronics chain posted fourth-quarter sales that missed analysts’ estimates and said it would close as many as 1,100 locations.

Revenue declined 20 percent to $935.4 million, the Fort Worth, Texas-based company said in a statement today. Analysts anticipated $1.12 billion on average.

The shares dropped 15 percent to $2.30 as of 7:28 a.m. New York time before the markets opened, after declining as low as $1.95. As of yesterday, the stock had declined 35 percent since its 2013 peak of $4.19 in May.

Chief Executive Officer Joe Magnacca, who took over last year, has been trying to turn around the struggling chain with new-format stores and a smaller number of stocked items. Following a review, the retailer said today it would shut down as many as 1,100 underperforming stores, leaving about 4,000 locations, including over 900 dealer franchise locations, across the U.S.

Net loss widened to $191.4 million last quarter, marking the eighth consecutive quarterly loss. That compared with a loss of $63.3 million in the year-earlier period.


--Editors: Cecile Daurat, Kevin Orland


To contact the reporter on this story: Cecile Daurat in Wilmington at cdaurat@bloomberg.net


To contact the editor responsible for this story: Cecile Daurat at cdaurat@bloomberg.net

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