Jon88

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Radio.jpg

Reuters
6:48 a.m. CST, March 4, 2014

Retailer RadioShack Corp. reported a wider quarterly loss on Tuesday and said it will close up to 1,100 U.S. stores after a huge drop in sales over the holidays, sending its stock down 23 percent.

The planned closures would leave the Fort Worth, Texas-based chain with over 4,000 stores, including over 900 dealer franchise locations, its chief executive officer said.

Sales at stores open at least a year fell 19 percent in the fourth quarter on weak customer traffic.

RadioShack's sales have been in free fall amid executive departures, tough competition and an image problem. Despite its ubiquitous presence, analysts say the U.S. retailer has not done enough to transform itself into a destination for mobile phone shoppers or become hip enough to woo younger shoppers.

Its net loss widened to $191.4 million, or $1.90 a share, in the fourth quarter, from $63.3 million, or 63 cents, a year earlier.

Sales fell to $935.4 million in the quarter covering the all-important holiday season, from $1.17 billion in the year-ago period. Analysts, on average, looked for sales of $1.12 billion, according to Thomson Reuters I/B/E/S.

CEO Joe Magnacca, who took the helm in February 2013, has said he expected the turnaround to take several quarters. He blamed the latest sales weakness on poor shopper traffic, intense discounting by rivals, tepid mobile phone demand and operational problems.

RadioShack has been working with bankers from Peter J. Solomon Co. to boost liquidity and with AlixPartners on improving operations.

The retailer, which secured new loans heading into the holidays, ended the fourth quarter with total liquidity of $554.3 million, including $179.8 million in cash and cash equivalents and $374.5 million in available credit.

At Dec. 31, its debt totaled $614 million and matures between 2018 and 2019.

Under Magnacca, RadioShack has changed its logo, reduced store clutter and improved displays of key brands. It has also been moving some products from stores to its website, and carrying more private-label goods with higher margins.

The retailer recently named a new merchandising chief, global sourcing chief and chief financial officer. But some analysts say the efforts are too little, too late.

RadioShack shares were down 23.2 percent at $2.09 in premarket trading
 
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Isn't this pretty normal for every technology outlet, save for maybe Best Buy?

I know they closed a shit ton of Circuit City's not that long ago.

And I though Radio Shack did a pretty good job on their Super Bowl commercial. But yeah that place does seem so 1980s.
 

bbgun

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Damn. I was just about to buy a CB radio and some shitty hand-held games.
 

Jon88

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I know they closed a shit ton of Circuit City's not that long ago.

They closed them all.

Pretty much every retailer is getting beat by Wal Mart, Target, and Amazon. It's almost impossible to compete with those 3.
 
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Your mom competes with them. More so because of her low prices, not so much her quality or great service.
 

Jon88

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When I was a kid I used to hate how Radioshack put their name on every single product they sold. If you got a cheap watch, it said RadioShack on it. A piece of shit handheld game? RadioShack. I got to where I hated that store.
 
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I bet you probably wrote your name on all your toys and thats why your parents hate you Jon.
 

Jon88

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I bet you probably wrote your name on all your toys and thats why your parents hate you Jon.

My mom may not like me and that's fine, but my dad and I are going to dinner tomorrow. Tomorrow is my birthday.
 

Jon88

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Well, he'll let me get a combo. I wouldn't go so far as to supersizing it. That's how you smacked.
 

dbair1967

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Jon, I dont know why others here are mean to you.

I may complain to forum management about this.
 

Jon88

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Jon, I dont know why others here are mean to you.

I may complain to forum management about this.

It's too late, David. I'm writing the suicide note as we speak and going to Home Depot to get some rope after work.
 

Iamtdg

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It's too late, David. I'm writing the suicide note as we speak and going to Home Depot to get some rope after work.

What are you going to do with the rope? Tie up your blowup doll?

OMGLAWLFACE
 

Bob Sacamano

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No, Mid's right. There's a couple of Circuit City stores still around. One is in Manitoba, Canada.

You should take a drive up there, midswat. I hear it's nice out.
 
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