He went on to cite, however, sales growth in its new concept stores and the lift from its Super Bowl ad, which was ranked as one of that Sunday's best. But the new concept stores, however, may not be numerous enough to have a measurable impact. Only 100 new concept stores are planned for this year, in addition to a small number of new locations and relocations, out of the 4,000 or so that will remain after the closures take place, Magnacca said on the earnings call.
Though industry insiders have had nothing but praise for Magnacca, who they said could have had any number of retail positions after a successful turnaround as president of Duane Reade Inc. and its sale to Walgreens Co., the same people also said that he may now regret taking on RadioShack. The retailer is more troubled than he first thought, those sources said, and the turnaround is expected to be more difficult.
Still, Magnacca showed "a lot of guts," one person said, for choosing the RadioShack job as his first occupying the corner office.
Though plans to effect a turnaround were put in place last fall, the company still has to show operating results, a source said.
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RadioShack also reported that revenue for the fourth quarter was about $935 million, down from roughly $1.17 billion during a similar period a year prior, while the company's operating loss was approximately $166 million, compared to positive operating income of $16 million the year before. The retailer had a net loss of about $191 million, compared to a net loss of roughly $63 million the year prior.
For 2013, RadioShack had revenue of $3.43 billion, compared to $3.83 billion the year before, while comparable store sales were down 8.8%. The company had an operating loss of $344 million whereas the year before it had an operating loss of $25 million. It had a net loss of about $400 million, compared to a net loss of nearly $140 million the year prior.