RadioShack May Have to Close Stores, Sell Assets

The company posted an annual loss on declining sales

   

RadioShackPromo RadioShack May Have to Close Stores, Sell AssetsDespite warning that it will be forced to increase its debt, sell subsidiaries and shutter stores if it can’t raise sales by next year, shares of RadioShack (NYSE:RSH) rose more than 3% in midday trading on Tuesday

The struggling electronics retail chain posted a fourth-quarter loss of $63.3 million. That included a $67 million charge for the valuation of deferred tax assets. Adjusted earnings came in a 4 cents a share, beating analysts who had forecast a loss of 5 cents a share, Reuters noted.

RadioShack185 RadioShack May Have to Close Stores, Sell Assets
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Still, quarterly sales tumbled 7% from the prior year, down to $1.29 billion. That included an 8% decline in mobile phones sales due to constrained supplies of Apple‘s (NASDAQ:AAPL) iPhone 5.

In a regulatory filing, the company noted that its cash and equivalents dropped to $535.7 million at the end of 2012, down 9% from 2011. Radioshack said it lost $139.4 million last year.

In January, RadioShack announced that it would end its mobile phone sales partnership with Target (NYSE:TGT) in April after the two retailers had failed to agree on terms to extend its management of Target’s in-store cellular phone shops.


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/radioshack-may-have-to-close-stores-sell-assets/.

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