Tandy, Short of Phones, Sees Shares Drop

Shares of Tandy Corp., owner of the RadioShack electronics chain, tumbled 20% after the company said December sales have been disappointing. The retailer said it hadn’t ordered enough digital wireless phones and low-price computers, and that the shortfall caused sales in stores open at least a year to lag its forecast for an 8% to 10% gain in December. Wireless phones account for about 70% of sales, said Tandy spokeswoman Kay Jackson. The company said it is working with suppliers to fix the phone shortage and it could still meet or beat December sales targets. Chief Executive Leonard Roberts said sales of laptops, printers and monitors have been brisk. The company expects double-digit sales gains for the fourth quarter and full year. It also expects to meet earnings expectations of 62 cents a share for the quarter. Tandy shares skidded $13 to close at $53 on the New York Stock Exchange.