RadioShack loses money in last quarter, hurt by mobile
RadioShack lost $63.3 million in its fiscal fourth quarter, pressured by weaker mobile sales.
The struggling electronics chain based in Fort Worth, Texas, is looking to rebuild its business as it contends with fierce online competition.
Earlier this month, it named former Walgreen Co. executive Joseph Magnacca as its new CEO. Magnacca took over the post from James Gooch, who stepped down as RadioShack's CEO in September after only a year and a half on the job.
RadioShack's loss amounted to 63 cents per share for the three months ended Dec. 31. A year earlier it reported net income of $11.9 million, or 12 cents per share.
Revenue declined 7 percent to $1.3 billion from $1.39 billion.
Analysts predicted a loss of 6 cents per share on revenue of $1.36 billion.
"The most significant contributing factor to the decline in our performance was the postpaid wireless business, which saw a decline in transaction volume across the year, combined with a lower margin rate," Dorvin Lively, executive vice president, chief financial officer and chief administrative officer, said in a statement on Tuesday.
Revenue at stores open at least a year dropped 7 percent. This metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
For the year, RadioShack Corp. lost $139.4 million, or $1.39 per share. The company reported net income of $72.2 million, or 70 cents per share, in the prior year. Annual revenue fell 3 percent to $4.26 billion from $4.38 billion.
RadioShack has more than 4,600 company-run stores in the U.S. and Mexico, 1,500 wireless phone centers in the U.S. and more than 1,000 dealer and other outlets worldwide.
Its shares finished at $3.05 on Monday. They have traded in a 52-week range of $1.90 to $7.29.