RadioShack Corp. (RSH) Posts Q1 Loss of 97c/Share; Comps Fell 14%

RadioShack Corp. (NYSE: RSH) reported Q1 EPS of ($0.97), which may not compare with the analyst estimate of ($0.51). Revenue for the quarter came in at $736.7 million versus the consensus estimate of $764.31 million.

On an adjusted basis, loss from continuing operations was $99.3 million, which compares to an adjusted loss from continuing operations of $26.5 million last year.

Comparable store sales were down 14% driven by traffic declines and soft performance in the mobility business.

Joseph C. Magnacca, chief executive officer, said, "Overall, 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. In particular, our mobility business was weak due to lackluster consumer interest in the current handset assortment and increased promotional activities across the industry including the wireless carriers. This resulted in disappointing sales and gross margin performance."

"Even in this environment, we are making progress on our turnaround strategy. We are building the pipeline of new products that will bring differentiation and newness to our stores in the form of high-margin private brand and exclusive items, including those from new partnerships like Quirky and PCH." Mr. Magnacca continued. "Our concept stores continue to drive strong sales growth, and we have begun to execute our 100-store remodel program to scale the successful components of our concept stores across our network. We have continued to drive our new 'Do It Together' brand campaign, which highlights one of our greatest strengths, our store associates and the knowledge and solutions they provide to our customers every day."

Mr. Magnacca concluded, "We are also successfully reducing our costs, with a particular focus on removing expenses that do not impact the customer experience, and have taken steps to lower our corporate headcount, leverage technology, and reduce discretionary expenses. Our entire team is focused on executing our vision, adapting to the environment, managing our balance sheet, and driving sustainable change."

For earnings history and earnings-related data on RadioShack Corp. (RSH) click here.

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