RadioShack Miss, Massive Closures Send RSH Stock Spiraling

Its quarterly loss widened significantly

   

RadioShack Miss, Massive Closures Send RSH Stock Spiraling

RadioShack185 RadioShack Miss, Massive Closures Send RSH Stock SpiralingOn 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.

RadioShackPromo RadioShack Miss, Massive Closures Send RSH Stock Spiraling
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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%.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/radioshack-miss-massive-closures-send-rsh-stock-spiraling/.

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