RadioShack Profit Falls; Store Closures Planned

Electronics retailer RadioShack Corp. said fourth-quarter earnings dropped 62%, and it announced plans to close 400 to 700 stores and two distribution centers as part of a plan to improve its financial performance. Its shares tumbled 8%.

The Fort Worth-based company said it could not project the exact number of job cuts until it identified all affected stores. RadioShack said stores it planned to close were company-operated.

There are nearly 7,000 RadioShack stores operated by the company or dealers, and more than 700 wireless kiosks. RadioShack also has more than 100 stores in Mexico.

RadioShack earned $49.5 million, or 36 cents a share, in the three months ended Dec. 31, down from $130.9 million, or 81 cents, a year earlier. The profit decline reflected a $62-million write-down in the value of its inventory, higher promotional expenses and a merchandise shift.

Revenue grew 5% to $1.67 billion, helped by a 4% increase in stores open at least a year.

The company’s shares sank $1.67 to $19.08.