On Tuesday, struggling electronics chain RadioShack (RSH) announced lower-than-expected fourth-quarter sales and said it would close a massive number of stores. Investors promptly fled Radioshack stock, sending RSH shares plunging more than 23% in pre-market trading.
During the quarter, RadioShack said sales dropped to $935.4 million. That was down from $1.17 billion in the prior-year period, and well below the $1.12 billion that Wall Street had expected. Same-store sales were down 19% during the quarter, Reuters noted.
RadioShack reported a quarterly loss of $191.4 million, more than triple the loss of $63.3 million it posted in the prior-year period.
With sales declining, RadioShack said it would shutter as many as 1,100 stores across the U.S.
CEO Joseph Magnacca — who was named to the top job at RadioShack last year — has attempted to turnaround the retailer’s flagging fortunes, but the chain has continued to miss quarterly forecasts.
RSH stock closed at $2.68 on Monday. Over the past year, RadioShack stock has declined about 10%.