RadioShack doubled its loss
RadioShack Corp. more than doubled its loss from a year ago and its chief financial officer resigned.
The stock is trading lower in afternoon trading. RadioShack reported its first same store sales increase since the fourth quarter of 2024. Some of the profit decline is due to aggressive clearance of discontinued inventory, the company said during a conference call this morning. RadioShack is reducing the number of items and brands stocked [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] in stores from 4,000 to 3,000. It also had a $10 coupon that shaved profits.
CFO Dorvin Lively is leaving the company and AlixPartners managing director Holly F. Etlin will be interim CFO. RadioShack said last [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] week that it had been working with AlixPartners for some time. It’s also hired investment banking firm Peter J. Solomon Co.
The firms were hired support and accelerate the turnaround, said RadioShack CEO Joe Magnacca. "Looking ahead, we expect the turnaround to take several quarters, and during that time our results may vary from quarter to quarter as we make strategic changes to improve our long term financial performance. left [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] RadioShack to become CFO of a New Hampshire based health [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] club franchise company with 650 ********s called Planet Fitness.
The Fort Worth based consumer electronics chain reported a net loss of $53.1 million, or 53 cents a share, in the quarter ended June 30 compared with a loss of $21 million, or 21 cents a share, a year ago.
Sales were adjusted downward to reflect the discontinued Target mobile [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الرابط للتسجيل اضغط هنا] business, and on that basis, total sales were flat at $844.5 million. RadioShack restated its last year second quarter sales to $849 million. Same store sales increased 1.3 percent.
Analyst forecast a loss of 24 cents a share and a 14.4 percent decline in sales to $815.8 million, according to Thomson Reuters.
That was based on last year’s total sales of $953 million which included the Target mobile business that was discontinued in April. Last year in the second quarter, the Target mobile business represented a loss of $7.1 million and sales of $104.7 million, according to the company quarterly filing this morning.
As of June 30, RadioShack said it had access to $818 million, including cash of $432 million and $386 million of bank credit line. It had total debt of $713 million. That includes a $214 million debt payment due on Aug. 1. The rest of its debt isn’t due until 2024 and 2024.
Some speculated that a sale of the company was in the works. Last week, Magnacca said that wasn the case and he was there to turnaround the business.
Much of the inventory taken out of stores will still be available online, Magnacca said. He making room for more current merchandise as the retailer goes after a younger shopper. beats by Dr. Dre Pill portable Bluetooth speakers and Fitbit activity monitors are examples, he said. RadioShack is also expanding inside college bookstores. The first RadioShack section opened this month in the University of Texas at Austin Co op store.
Going forward, Etlin said, RadioShack ****ves will be more dynamic and have changeable inventory like you would expect from a retailer in this category.
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