RadioShack to close up to 1,100 ‘underperforming’ stores
Beleaguered electronics retailer RadioShack Corp. reported its fourth-quarter store sales were down 19% compared to last year and that it would close up to 1,100 underperforming stores, the Fort Worth company said Tuesday.
“Our fourth-quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues,” RadioShack chief executive Joseph C. Magnacca said.
The company’s fourth-quarter revenue was down 20%, slumping to $935.4 million compared to nearly $1.2 billion during the same period last year, RadioShack reported.
It also reported a net loss of $191.4 million for the fourth-quarter, its eighth consecutive quarterly loss. That compares to a net loss of $63.3 million last year.
Tuesday’s financial results are hitting the retailer’s stock hard. Shares for the company were down 45 cents, or more than 16%, to $2.27 in mid-morning trading.
Like many brick-and-mortar electronics retailers, RadioShack is struggling to reverse declining foot traffic to its stores. During the most recent holiday shopping season, it offered aggressive discounts to customers as an incentive to draw consumers to stores. It has most recently launched an effort to rebrand itself, buying airtime during the Super Bowl last month for advertising.
Magnacca said that over the last few months, executive leadership has reviewed its portfolio to consolidate its store base. He said the company will still have more than 4,000 stores in the U.S.
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