RadioShack Corp. says its fourth-quarter profit fell 39 percent as consumers pulled back on discretionary spending amid the recession.
The decline was much more than Wall Street expected from the Fort Worth-based electronics retailer.
Poor sales of GPS navigation systems, cameras and toys dragged down profit to $62 million, or 50 cents per share. Revenue fell 7 percent to $1.26 billion for the quarter.
Analysts surveyed by Thomson Reuters expected RadioShack to earn 70 cents per share on sales of $1.36 billion.
Same-store sales at company-run stores and kiosks fell 9.2 percent during the three months ending Dec. 31.
For the full year, earnings sagged 19 percent to $192.4 million, or $1.49 per share. Full-year sales slipped 1 percent to $4.22 billion, while same-store sales for company-operated stores and kiosks dipped 0.6 percent.
RadioShack has about 4,400 company-operated stores, 1,400 dealer outlets and nearly 700 wireless phone kiosks throughout the U.S. and approximately 200 company-operated stores in Mexico.
Business News
The company's shares fell $2.64, or 24.4 percent, to close at $8.18 Tuesday.
