This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Not Even RadioShack's Super Bowl Ad Can Save 1,100 Stores

NEW YORK (TheStreet) -- RadioShack (RSH) shares were plunging, down 14.15% to $2.34 following fourth-quarter results and the announcement it would be closing 1,100 under-performing stores.

CEO Joseph C. Magnacca announced the closings in a press release, noting that the company has undergone a comprehensive review, and needs to close the underperforming stores. "Our focus on the brand, our operations, and the in-store experience has been unfolding in parallel with a strategic review of our store footprint," Magnacca said in the press release. "Over the past few months, we have undertaken a comprehensive review of our portfolio from many angles -- location, area demographics, lease life and financial performance -- in order to consolidate our store base into fewer locations while maintaining a strong presence in each market. The result of that review is our plan to close up to 1,100 underperforming stores. We will continue to have a strong, unmatched presence across the U.S. with over 4,000 stores including over 900 dealer franchise locations.

Magnacca noted that the company, which competes with the likes of Best Buy (BBY), Amazon (AMZN) and other electronics retailers, is in the midst of working on the five pillars of its turnaround, as it continues to work toward improving performance in 2014.


WATCH: RadioShack Says Goodbye to the 80s and One Thousand Stores

Must Read: Why Tesla Is Serious About Its European Expansion

Turning to the fourth-quarter, RadioShack said revenue was $935.4 million, down from $1.17 billion in the year-ago quarter. Comparable store sales were down 19% over the same time frame, due to a sharp decline in traffic and weakness in the company's mobility business.

The company lost $1.90 per diluted share, or $191.4 million. On an adjusted basis, RadioShack lost $129.9 million.

Despite those numbers, Magnacca characterized the results as showing that the company is continuing to make progress. "Our fourth quarter financial results were driven by a holiday season characterized by lower store traffic, intense promotional activity particularly in consumer electronics, a very soft mobility marketplace and a few operational issues. Even in this environment, we're continuing to make progress on the five pillars of our turnaround plan: repositioning the brand, revamping the product assortment, reinvigorating the stores, operational efficiency and financial flexibility."

RadioShack has been seen as something of an out-of-date retailer, with the company recently poking fun at itself with a Super Bowl ad. In the ad, the company said, "The 80's called. They want their store back."

Featured in the ad were such 80s characters as Freddie Krueger, metal band Twisted Sister, and even wrestling stars Sergeant Slaughter and Hulk Hogan.

--Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
RSH $0.31 12.76%
AAPL $107.72 -4.47%
FB $87.23 -2.46%
GOOG $597.79 -3.31%
TSLA $238.63 -4.19%

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs