RadioShack Corporation (NYSE:RSH) released the earnings results from its most recently completed quarter this morning, posting adjusted losses of $1.04 per share on $650.2 million in revenue. Reported losses were $1.58 per share.
Analysts had been expecting losses of $1.04 per share on $717 million in sales. In the same quarter last year, the struggling electronics chain posted losses of $1.35 per share on sales of $775.4 million in sales.
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Key metrics from RadioShack’s earnings report
RadioShack reported a 13.4% decline in comparable same store sales for the third quarter of fiscal 2015. Overall sales for the quarter fell 16.1% year over year. Management cited lower traffic and “challenges in the postpaid mobility business.”
Executives said they did see progress in their retail segment, however, as comparable store sales in the U.S. only fell 2% year over year. They added that sales improved throughout the quarter as RadioShack focused more on private brand products and those with higher margins. The retail chain also focused on new programs like Fix It Here.
Additionally, management reported that their new Interactive Remodel stores performed 12 percentage points better than the total chain comparably. In the retail segment, the redesigned stores performed better by nearly 15 percentage points comparably.
Over Black Friday weekend, RadioShack reported a 25% increase in comparable store sales in U.S. stores. Mobility sales fell 27%
RadioShack to cut costs
“We have also begun a detailed set of cost reduction initiatives designed to enhance earnings by over$400 million annually, encompassing a range of operating cost reductions related to headquarters, field, stores, and store support to improve operational efficiency and right-size our business, as well as the benefit of targeted store closures,” said RadioShack CEO Joseph Magnacca in a statement.
Management has prepared a slide show explaining those cost reduction initiatives. That slide show is available on the company’s investor relations website. Magnacca said they’re focusing on three main initiatives, cutting costs to halt their negative cash flow, improving profitability and growth through their retail stores and improving the health of their mobility business.