Can RadioShack’s Slumping Stock Recover?
T = Trends for a Stock’s Movement
RadioShack engages in the retail sale of consumer electronics goods and services through its store chain. The company operates in two segments, U.S. RadioShack company-operated stores and Target Mobile centers. It offers postpaid and prepaid wireless handsets, tablet devices, home entertainment, wireless, computer, and music accessories, as well as general purpose and special purpose power products. RadioShacks all supplies laptop computers, personal computing products, digital music players, residential telephones, global positioning system devices, cameras, digital televisions, and other consumer electronics products.
RadioShack 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 nearly 24 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 totaled $935.4 million in the quarter covering the all-important holiday season, down 20.1 percent from $1.17 billion in the year-ago period. Sales at stores open at least a year fell 19 percent in the fourth quarter on weak customer traffic. The grim results were not entirely unexpected, considering the overall weakness in the consumer electronics industry during the holidays, but many on Wall Street took a grim view of the company’s prospects. ”The company’s results were much worse than we anticipated, and cast serious doubt on RadioShack’s long-term viability in our opinion,” said BB&T Capital Markets analyst Anthony Chukumba.