News Column

RadioShack Reports Financial Results for Period Ended May 3, 2014

June 25, 2014



By a News Reporter-Staff News Editor at Electronics Newsweekly -- RadioShack Corporation (NYSE: RSH) reported results for the period ended May 3, 2014.

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."

Note: All comparisons are versus the same period of the prior fiscal year unless otherwise noted.

13 WEEKS ENDED MAY 3, 2014, SUMMARY

-- Total net sales and operating revenues were $736.7 million, compared to

$848.4 million last year. Comparable store sales were down 14% driven by

traffic declines and soft performance in the mobility business.

-- Consolidated gross profit was $268.7 million, or 36.5% of net sales,

compared with $340.9 million last year, or 40.2% of net sales. The

decline in gross profit and gross margin rate was primarily driven by

aggressive price competition in our current postpaid and prepaid handset

Keywords for this news article include: Electronics, RadioShack Corporation.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Electronics Newsweekly


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters