RadioShack Plans To Close More Stores After Losing $161 Million In Third Quarter | KERA News

RadioShack Plans To Close More Stores After Losing $161 Million In Third Quarter

Dec 11, 2014

RadioShack's third-quarter loss widened, sales dropped for the eleventh consecutive quarter and the Fort Worth-based electronics retailer announced more cost cuts to stay afloat.

CEO Joseph Magnacca said Thursday that the company will reduce expenses at its headquarters and close stores. He says the maneuvers should boost earnings by more than $400 million annually.

RadioShack Corp. lost $161.1 million, or $1.58 per share, which was much worse than the per-share loss of $1.04 that analysts had expected, according to FactSet. It's also a bigger loss than last year's $135.9 million, or $1.35 per share.

Revenue declined to $650.2 million during the period ended Nov. 1, also missing Wall Street's estimate of $717 million.

Sales at stores open at least a year, a key indicator of a retailer's health, tumbled 13.4 percent.

The ubiquitous seller of batteries and obscure electronic parts has run into trouble as online competition has grown fiercer. The company's explosive growth exacerbated those problems and it has become a central issue it its fight with lenders as it tries to close hundreds of locations.

The company said in March that it planned to close up to 1,100 U.S. stores, trimming the total to just over 4,000. It backed away from that aggressive plan two months later under pressure from lenders and vowed to find other ways to cut costs, including more limited store closings.