After getting pounded during the regular trading day on Monday, RadioShack Corporation (NYSE:RSH) shares surged as much as 4 percent in premarket trading after the company’s latest earnings report. It reported net losses of 53 cents per diluted share on total net sales and operating revenues of $845 million. The retail chain also announced that its chief financial officer was leaving the company.
Analysts were expecting the company to report losses of 24 cents per share on $814.56 million in revenue.
RadioShack’s comparable store sales grew
During the second quarter of the year, RadioShack Corporation (NYSE:RSH)’s comparable store sales rose 1.3 percent, although they were offset by the impact of closed sales. The company said its signature platform generated the sixth quarter in a row of sales growth at company operated stores in the U.S.
Gross profits during the quarter were $314 million, compared to $340 million last year. The retail chain said gross profit performance was negatively impacted by soft postpaid unit demand and also consumer responses to the various promotions the company offered during the quarter.
Gross margins were 37.2 percent of net sales, compared to 41.1 percent last year. RadioShack Corporation (NYSE:RSH) said it was testing various promotions during the quarter, which caused a negative impact on its gross margins.
RadioShack continues to have a strong balance sheet
At the end of the June quarter, the company’s total liquidity was $818 million, including both cash and cash equivalents. RadioShack Corporation (NYSE:RSH) repurchased $2 million of its 2013 Convertible Notes which are due August 1. The company plans to pay off the rest of its Convertible Notes when they mature with cash. They come due between 2016 and 2019.
Capital spending also fell during the quarter to $6 million, compared to $17 million in the same quarter a year ago.
CFO Dorvin Lively leaves RadioShack
Along with today’s earnings, RadioShack Corporation (NYSE:RSH) announced that Chief Financial Officer Dorvin Lively is leaving the company “to pursue a new career opportunity with a strategic equity-owned retail company.” RadioShack Corporation (NYSE:RSH) is now looking for a replacement but has appointed Holly Etlin to serve as interim CFO.