Consumer electronics retailer RadioShack Corp. (RSH) posted Tuesday a significantly wider-than expected net loss in its first quarter, as sales were hurt by poor performance at its U.S. RadioShack company-operated stores. Further, Chief Executive Joseph Magnacca remarked on the initial priorities and initiatives underway for the company's turnaround, and said the 100 day plan is on track.
The company, which has been posting quarterly losses for sometime now, said it is rolling out a new brand image, and will see changes in branding and advertising soon.
Magnacca said, "I believe in this brand. … We are building a compelling long-term strategic vision and plan that plays to our strengths and is centered around the customer. We believe there is an opportunity to drive sales growth over time in each of our platforms: mobility, signature and consumer electronics. The pace of our initiatives will vary, but each of the initiatives will contribute to bringing RadioShack back to the forefront of our customers' minds and to improving our financial performance and profitability."
In the first quarter, the company's net loss was $43.3 million or $0.43 per share, compared to prior-year's loss of $8 million or $0.08 per share. The latest-quarter results included loss from discontinued operations of $8.5 million related to Target Mobile centers, which ceased operations prior to March 31.
On a continuing operations basis, net loss was $34.8 million or $0.35 per share, compared to loss of $4.7 million or $0.05 per share a year ago. On average, 18 analysts polled by Thomson Reuters expected loss of $0.11 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total net sales and operating revenues declined to $849 million from prior year's $913.3 million. Analysts estimated revenues of $963.97 million for the quarter.
Net sales and operating revenues from U.S. RadioShack company-operated stores fell to $770.1 million from $833.6 million last year. Comparable store sales were down 5.7 percent. The company said its signature platform generated the fifth consecutive quarter of sales growth in its U.S. company-operated stores.
Gross profit declined from last year, negatively impacted by a decline in postpaid units sold versus last year. Gross margin rate in total was 40 percent of net sales, a decline of 80 basis points from last year, negatively impacted by an increase in the mix of higher-priced smartphones that have an overall lower margin rate. However, gross margin rate excluding postpaid wireless business improved.
In pre-market activity, RadioShack shares are currently trading at $3.06, down $0.08 or 2.55 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.