Struggling electronics retailer RadioShack Corp.'s woes worsened Tuesday when the Fort Worth company reported a quarterly loss of $98.3 million, more than triple its operating loss a year ago.
It’s RadioShack’s ninth consecutive quarterly loss and comes just months after the company announced it would close up to 1,100 underperforming stores.
“Our first-quarter performance was challenged by an industry-wide decline in consumer electronics and a soft mobility market which impacted traffic trends throughout the quarter,” RadioShack Chief Executive Joseph C. Magnacca said.
The former Walgreens Co. executive said RadioShack’s mobile business was particularly weak because of “lackluster consumer interest” in its current assortment of handsets. “This resulted in disappointing sales and gross margin performance,” he said.
Shares for the Texas company fell as much as 14% Tuesday morning. In late morning trading, RadioShack shares were down 14 cents, or 9.25%, to $1.40.
The company is in the middle of an overhaul effort that includes remodeling 100 of its stores to “concept stores.” The updated outlets are aimed at allowing consumers to test out gadgets and interact with sales staff.
Efforts to close its underperforming stores are being challenged by lenders, the company said. It may only be able to close a fraction of those 1,100 stores.
In its earnings statement for its fiscal first quarter, ended May 3, the company said it was moving forward with a previously announced partnership with Quirky, a New York invention company, to stock its products in RadioShack stores.
Magnacca, who has been chief executive for about a year and half, has said that the “RadioShack turnaround will take time.”