by Christopher Freeburn | February 26, 2013 1:15 pm
Despite 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.
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.
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