FORT WORTH, Texas – RadioShack plans to close up to 1,100 of its underperforming stores in the U.S. and reported a wider loss for its fourth quarter as customer traffic slowed during the critical holiday season.
Its stock tumbled almost 15 percent by early afternoon Tuesday.
CEO Joseph Magnacca said in statement that the planned store closings would leave RadioShack with more than 4,000 U.S. stores, including more than 900 dealer franchise locations. Company officials did not immediately identify which stores are to be closed, and company officials did not reply to a call from the Portland Press Herald seeking information about whether any Maine stores would be among them.
RadioShack has more than 20 locations in the state, although some involve other retailers selling the company’s products. There are two RadioShack stores in Portland and one in South Portland, along with stores in Augusta and Bangor.
The electronics retailer said the stores to be closed are being selected based on location, area demographics, lease duration and financial performance.
Magnacca said the latest quarter’s performance was hurt by increased promotional activity – particularly in consumer electronics; a very soft mobility marketplace and a few operational issues.
For the period ended Dec. 31, RadioShack Corp. lost $191.4 million, or $1.90 per share. That compares with a loss of $63.3 million, or 63 cents per share, a year earlier.
Excluding certain items, the Fort Worth, Texas, company lost $1.29 per share. Analysts surveyed by FactSet expected a loss of 16 cents per share.
Revenue declined to $935.4 million from $1.17 billion. Wall Street was looking for higher revenue of $1.12 billion.
Sales at stores open at least a year fell 19 percent on weaker traffic and the soft performance of its mobility business.
This figure is a key gauge of a retailer’s health because it excludes results from locations recently opened or closed.
RadioShack reported a full-year loss of $400.2 million, or $3.97 per share. In the prior year it lost $139.4 million, or $1.39 per share.
Its adjusted loss was $3.04 per share. Annual revenue declined 10 percent to $3.43 billion from $3.83 billion.
Shares of RadioShack fell 47 cents, or 17 percent, to $2.25.
Press Herald staff writer Ed Murphy contributed to this story.