RadioShack posted a 62 percent drop in fourth-quarter net income, and announced a massive restructuring plan that could include closing up to 10 percent of stores. Wireless is primarily to blame. The company told investors that strong sales in products such as digital cameras, satellite radios and portable DVD players were not enough to offset weakness in wireless and other high-margin items. Wireless sales took a hit when Verizon Wireless transitioned out and Cingular Wireless came in. RadioShack expected a considerable increase in Sprint Nextel sales to offset the transition, but it didn't happen.
To read more about RadioShack's woes:
- check out this article from MarketWatch