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

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.

If you liked this article you might like

Jim Cramer's 'Mad Money' Recap: How to Become an Even Better Investor

Jim Cramer's 'Mad Money' Recap: How to Become an Even Better Investor

The Single Biggest Reason RadioShack Is Still Likely to Vanish

3 Things Best Buy Was Able to Do That RadioShack Wasn’t

Sprint (S) Stock Up Today on RadioShack Store Agreement