Radioshack finally going down?

[superunknown23]

RadioShack losses mount

Times are still tough for RadioShack. The consumer electronics retailer said its first-quarter loss widened to $98.3 million as sales slid for the ninth straight quarter. The company still plans to close 200 stores.

Shares of RadioShack fell 29 cents, or 18.8%, to $1.25 in pre-market trading about two hours ahead of the market opening .

"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," chief executive officer Joseph Magnacca said in a statement.

"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."

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.

The retailer launched a nationwide Fix It Here program for phones and tablets with cracked screens, broken buttons, faulty cameras, water damage, audio issues and other maladies, that it hopes will lure customers into the stores. Major selling point: in select markets RadioShack promises same-day repair service.

The company closed 22 stores in fiscal 2015 and expects to close up to 200 stores which will be selected based on location, area demographics, lease life and financial performance, the Fort Worth, Texas-based company said in a statement. RadioShack backed off plans to close up to 1,100 stores because it was unable to reach an agreement with its lenders.

For the period ended May 3, RadioShack Corp. lost $98.3 million, or 97 cents per share. That compares with a loss of $28 million, or 28 cents per share, a year earlier.

Excluding certain items, its loss from continuing operations was 98 cents per share. Analysts, on average, expected a loss of 52 cents per share, according to a FactSet poll.

Revenue for company declined 13% 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% on softer traffic and weakness in the mobile business. This metric excludes results from stores recently opened or closed.

Still, Magnacca said, "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."

RadioShack operates 4,300 stores in the U.S., 274 in Mexico, and about 950 dealer outlets worldwide. The company has struggled to remain competitive in the 21st century tech landscape as competitors like Best Buy, Walmart, the Verizon store, and Amazon increasingly offer the same products but with a wider selection and lower prices.

"The creditors are in control of the ship, and the ship is sinking," Michael Pachter, an analyst at Wedbush Securities in Los Angeles, said in a June 4 note. "RadioShack has been losing share for several years in its key product categories, and we expect share losses to magnify weak overall demand for its products."

The Associated Press

I've always been puzzled how they managed to survive while electronic stores were dying (Circuit City, Best Buy, Fry's, etc)

 

[tmonster]

I've always been puzzled how they managed to survive while electronic stores were dying (Circuit City, Best Buy, Fry's, etc)

switched to selling cell phones and cell phone accessories (high margins, high obsolescence)

 

[Chris.B]

Their business model was never sustainable

 

[Meta Reign]

I've always been puzzled how they managed to survive while electronic stores were dying (Circuit City, Best Buy, Fry's, etc)

The long running "joke" has always been that radio shack is a CIA front of some sort. That's the only reason they have been able to stay in business lol.

 

[Rarely-Wrong Liggins]

Looks like a long running intelligence operation might finally be winding down.

 

[Hawaiian Punch]

I feel bad but the reality is I haven't been in that store in ages. I will say that if you were looking for a wire or some electronic part they were great. Se la vi

 

[Vandelay]

Where am I gonna get my batteries from now?




Real talk, used to get mad remote control cars from them back when I was a kid...it does really beg the question how did they stay in business...rc cars, batteries, and cordless phones can't sustain a business this big for this long.

 

[Starman]

Where am I gonna get my batteries from now?




Real talk, used to get mad remote control cars from them back when I was a kid...it does really beg the question how did they stay in business...rc cars, batteries, and cordless phones can't sustain a business this big for this long.

*Checks username*

 

[88m3]

Looks like a long running intelligence operation might finally be winding down.

Mission Accomplished then?

I think you would be hard pressed to find someone who has never a bought a thing from them in their lives.

 

[Calmye]

Damn they hung on as long as they could. But I can buy R/C remote control cars on Amazon for Damn near half the price

 

[Ruck]

good riddance. these dudes had my pops by the balls back in the day. my dad was such an herb for falling for their bullshyt and buying overpriced rc cars for me for christmas which i didn't even want and pos compaq desktops

 

[superunknown23]

Mission Accomplished then?

I think you would be hard pressed to find someone who has never a bought a thing from them in their lives.

They stayed in business despite selling overpriced shyt that could be found everywhere cheaper

 

[King Poetic]

just like blockbuster

they waited to late in the game to change with the times. they still stuck on 2004 while the world is focusing on 2015

 

[Domingo Halliburton]

the stores were pieces of shyt anyways. all the stuff seemed cheap.

 

[Field Marshall Bradley]

Might be time to drop a G on RSH and roll the dice....