Radio Shack to Close A Thousand Stores--CBS

MoneyWatchMarch 4, 2014, 8:11 AM

RadioShack to close up to 1,100 stores

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FORT WORTH, Texas - RadioShack Corp. (RSH) plans to close up to 1,100 of its underperforming stores in the U.S. and reported a wider loss for its fourth quarter as traffic slowed during the critical holiday season.

The planned closings, announced Tuesday, would leave RadioShack with more than 4,000 stores.

The company didn't immediately identify what stores are being closed. The electronics retailer said that the stores to be closed are being selected based on location, area demographics, lease duration and financial performance.

For the period ended Dec. 31, the electronics retailer lost $191.4 million, or $1.90 per share. That compares with a loss of $63.3 million, or 63 cents per share, a year earlier. Excluding items, RadioShack lost $1.29 per share.

Analysts expected a loss of 16 cents per share. Revenue declined to $935.4 million from $1.17 billion. Sales at stores open at least a year fell 19 percent on weaker traffic and the soft performance of its mobility business.

CEO Joseph Magnacca said the latest quarter's performance was hurt by increased promotional activity, particularly in consumer electronics, along with a soft mobility marketplace and operational issues.