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RadioShack Closing Several Hundred Stores

POSTED: 11:59 am PST February 17, 2006

DALLAS -- RadioShack said it plans to close up to 700 stores after reporting profits in the latest quarter dropped 62 percent from a year ago.

It also plans to shutter distribution centers in Charleston, S.C., and and Southhaven, Miss., to improve its financial performance.

The consumer electronics retailer says, excluding one-time items, it earned 38 cents a share.

RadioShack blames falling sales of higher profit-margin items and said sales of wireless phones were disappointing.

All the stores targeted for closing are company-operated. There are a total of nearly 7,000 RadioShack stores.

At midday, RadioShack shares were down nearly 8 percent, down $1.60 to $19.15.