RadioShack (NYSE:RSH) tumbled to a 52-week low on Monday after announcing the retirement of its chief executive, Julian Day, and weak fourth-quarter preliminary results.
The Fort Worth, Texas-based retailer said it booked net sales for the three months ended Dec. 31 of $1.37 billion, up 4% from $1.32 billion a year ago, virtually matching average analyst estimates polled by Thomson Reuters.
The electronics seller expects to post earnings in the range of 50 cents to 54 cents a share, which would widely miss the Streetâ€™s view of 67 cents and would fall below its 2009 earnings of 60 cents.
The company, which is slated to announce full results on Feb. 21, said the losses came on disappointing performance in the companyâ€™s T-Mobile business, lower margin wireless handsets and incremental promotional and clearance markdowns, partially offset by higher sales in its wireless platform.
Upon RadioShack CEO Dayâ€™s retirement at the companyâ€™s annual shareholder meeting in May, current chief financial officer, Jim Gooch, will take over the reigns. Until then, Gooch will continue to serve as head of finance and will take on the additional role of president.
Day said the company is well positioned for the future, and noted that this is â€śthe right timeâ€ť for him to step aside. Gooch, he said, is an â€śexceptional business executive with a deep understandingâ€ť of the business and a clear understanding of where it should go next.
The board has decided to separate the chairman and CEO positions, and has named Daniel R. Feehan, currently the boardâ€™s presiding director and member of the companyâ€™s board since 2003, as non-executive chairman upon Dayâ€™s retirement.
Feehan currently services as CEO of Cash America International.