RadioShack Q1 Loss Widens - Quick Facts

(RTTNews) - Consumer electronic goods retailer RadioShack Corp. (RSH) posted a wider first-quarter loss from continuing operations of $98.3 million, or $0.97 per share, as against a loss of $23.3 million, or $0.23 per share, a year before. On an adjusted basis, loss from continuing operations was $99.3 million, or $0.98 per share, compared with a $26.5 million loss, in the previous year. On average, 13 analysts polled by Thomson Reuters expected loss per share of $0.52 for the quarter. Analysts' estimates typically exclude one-time items.

Operating loss for the quarter widened significantly to $81.0 million, from $10.3 million last year. On an adjusted basis, operating loss was $82.0 million, excluding certain non-cash and one-time reserves on inventory and impairments of fixed assets, the company noted.

Quarterly total net sales and operating revenues were $736.7 million, down compared with $848.4 million, reported a year ago. Comparable-store sales fell by 14% driven by traffic declines and soft performance in the mobility business. Analysts estimated revenues of $767.45 million for the quarter.

Commenting on the results, the firm's chief executive stated, "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."