Shares of electronics retailer RadioShack Corporation (RSH) tumbled more than 27 percent in early trading Tuesday, after the company announced plans to close up to 1,100 stores —a fifth of its total— and reported a wider loss for its fourth quarter.
The Fort Worth, Texas-based company reported a 4Q loss of $191.4 million, or $1.90 a share, compared with a loss of $63.3 million, or $0.63 per share, a year earlier. Revenue nosedived 20% to $935.4 million, down from $1.17 billion in the year-ago quarter. Analysts surveyed by Thomson Reuters expected revenue of $1.12 billion.
Chief Executive Joseph C. Magnacca said the poor results “were driven by lower store traffic and a very soft mobility marketplace.”
RadioShack shares are currently seeing strong downward momentum, as the news continues to be factored into the price. This dynamic will put RSH in the next few trading sessions on track to print the tape around the 52 wk low of $2.02 set on Jan 17, 2014.
RSH has an average 3-month day trading volume of 2.6 million shares. The ticker has a 52wk range of $2.02 – $4.36. The company has a current market cap of $239 million and a current ratio of 2.66.