Radio Shack Plans Massive Store Closure And The Stock Is Crashing
Mar 4, 2014, 17:57 IST
Electronics retailer Radio Shack just released its Q4 financial results, and the numbers are ugly.
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The company reported an adjusted net loss of $1.29 per share, which was much worse than the $0.13 expected by analysts.
"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," said CEO Joseph Magnacca.
Management announced plans to close 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," added Magnacca.
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The stock is down by over 25% in pre-market trading.
More to come...