RadioShack shares are down more than 18% in pre-market trading after the electronics retailer reported a wider than expected quarterly loss.
The company posted a net loss of $US98.3 million, or $US0.97 a share. Analysts were looking for a loss of $US28 million, or $US0.28 a share.
Revenue fell 13% from a year ago to $US736.7 million and on a same store basis, sales fell 14%, which the company said was driven by traffic declines and poor sales in its mobile business. Analysts were expecting revenue of $US767.5 million.
The electronics retailer said it ended the quarter with total liquidity of $US423.7 million, including $US61.8 million in cash and cash equivalents and $US361.9 million available under a credit agreement.
“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 Joseph Magnacca said in a statement.
Magnacca added that the company has taken steps to cut costs, including lowering its corporate headcount and reducing discretionary expenses.
These charts show RadioShack’s performance over the last year and the last decade.
Its not pretty.