RadioShack Corporation (NYSE:RSH) reported worse-than-expected first-quarter earnings, even though analysts had set their expectations so low. As a result, the company’s stock plunged as much as 14 percent in pre-market trading.
This morning before opening bell, the company posted total net sales and operating revenues of $849 million, compared to $913 million in the same quarter a year ago. Adjusted net losses were 35 cents per share. Comparable store sales during the quarter fell 5.7 percent.
The electronics retailer posted net losses of $43 million or 43 cents per diluted share. That’s compared to a net loss of $8 million in the same quarter a year ago. Its operating loss was $19 million, compared to last year’s operating income of $7 million. Analysts were expecting this year’s first quarter losses to be 11 cents per share on falling revenues of $963.97 million.
RadioShack Corporation (NYSE:RSH) stopped operating its Target Mobile centers before the end of the quarter, so the company listed results for that segment as discontinued operations. The company reported that the centers contributed net losses of $8.5 million to its first-quarter results. In addition to the closing of its Target Mobile centers, the RadioShack Corporation (NYSE:RSH)’s CEO said more changes are around the corner.
“Last week we announced the hiring of a new chief marketing officer and a new senior vice president of store concepts,” said CEO Joseph Magnacca in a statement. “I have also studied the existing retail format and store experience and believe there is a significant opportunity to refresh and improve how we present the brand, how we deliver on our brand promise and how our customer experiences shopping with us.”
Magnacca promised a new brand image, changes in branding and advertising and remodeling in its physical stores. He said the company has already started work on its New York City locations.
During the first quarter, the company also bought back $70.5 million in principal value of the 2013 convertible notes due at the beginning of August at a total purchase price of $69.5 million.