theadanews.com - Ada, Oklahoma

March 4, 2014

Despite closings, Ada to keep its Radio Shack

Eric Swanson Staff Writer adanewsreporter@cableone.net
www.theadanews.com

Ada — Radio Shack’s decision to close nearly one-fifth of its stores across the United States will not affect the Ada operation, a spokesman for the company that owns the Ada store said Tuesday.

The Ada store is not on the closings list because it is a locally owned franchise rather than a corporate store, said Roger Cupps, operations director for Hoppe  Electronics.

“It helps to own it,” he said.

He said he was not surprised by news of the closings, as Radio Shack officials are looking for ways to boost the company’s fiscal health.

“They have been talking for the past couple of years about a restructuring process to put the company on a better financial footing,” he said.

A disappointing holiday season and declining revenues have prompted Radio Shack to shutter up to 1,100 stores across the United States. The company did not immediately identify which stores would close or how many jobs would be affected.

Radio Shack is taking steps to improve its financial health, such as revamping its product mix, CEO Joseph Magnacca told analysts Tuesday. But he acknowledged that the push was taking longer than expected because the company was weak in many areas.

Sales at outlets that were open at least a year — a key statistic in gauging a retailer’s health — dropped by 19 percent in the fourth quarter, the company said in a news release.

The company lost $191.4 million, or $1.90 per share in the fourth quarter, according to the news release. A year earlier, the company reported a loss of $63.3 million, or 63 cents per share. Excluding certain items, the company lost $1.29 per share, according to the Associated Press.

Analysts surveyed by the financial data company FactSet expected a loss of 16 cents per share.

Revenues dropped from $1.17 billion the previous fiscal year to $935.4 million, but the company was expected to generate $1.12 billion, according to the Associated Press.

The company reported a full-year loss of $400.2 billion, or $3.97 per share. The previous year, the company lost $139.4 million, or $1.39 per share.

The adjusted loss was $3.04 per share, and annual revenue fell from $3.83 billion to $3.43 billion.

The company said the stores that will close were chosen based on their location, area demographics, the duration of the lease and financial performance. The closings will leave Radio Shack with more than 4,000 stores across the country, including more than 900 dealer franchise locations.

Cupps said the Ada store has performed well since Hoppe Electronics acquired it in 2011.



EDITOR’S NOTE: The Associated Press contributed to this report.

Reach Eric Swanson at adanewsreporter@cableone.net.