Filed under: Earnings, Retail, Consumer Goods, Mobile Technology, Consumer Electronics
Its performance missed Wall Street's view. RadioShack (RSH) dropped almost 8 percent in morning trading on Tuesday.
CEO Joseph C. Magnacca said in a statement that its mobile business was hurt because the current handset assortment didn't resonate well with customers. It was also contending with more promotions, including those of wireless carriers.
Magnacca said that RadioShack is working on building its pipeline of new products, including private brand and exclusive items such as those from new partnerships with Quirky and PCH.
Part of its turnaround effort has included cutting costs, renovating stores and shuffling management. It also announced in March that it planned to close up to 1,100 of its stores in the U.S., leaving it with more than 4,000 U.S. locations.
For the period ended May 3, RadioShack lost $98.3 million, or 97 cents a share. That compares with a loss of $28 million, or 28 cents a share, a year earlier.
Excluding certain items, its loss from continuing operations was 98 cents a share. Analysts, on average, expected a loss of 52 cents a share, according to a FactSet poll.
Revenue for the Fort Worth, Texas-based company declined 13 percent to $736.7 million from $848.4 million. Wall Street was calling for $767.5 million.
Sales at stores open at least a year, a key gauge of a retailer's health, fell 14 percent on softer traffic and weakness in the mobile business. This metric excludes results from stores recently opened or closed.
Shares of RadioShack fell 12 cents, or 7.8 percent, to $1.42 in morning trading. Its shares have dropped almost 61 percent over the past year.