RadioShack 3rd Quarter loss widens

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Associated Press

Posted on October 22, 2013 at 12:01 PM

Updated Tuesday, Oct 22 at 12:02 PM

FORT WORTH, Texas (AP) — RadioShack's net loss widened in the third quarter as the struggling electronics retailer works on a turnaround plan.

Results missed expectations and shares fell more than 20 percent in midday trading on Tuesday. The company also said it received $835 million in financing lead by GE Capital.

RadioShack has been cutting costs, shuffling management and updating stores and product selection to battle back against tough competition from online retailers and discount stores that have expanded their electronics offerings. But the turnaround plan has not yet been able to stymie slumping sales.

"As we have said, we expect our work to take several quarters and during that time our results will vary quarter to quarter as we make strategic changes to improve our long-term financial performance," said CEO Joseph Magnacca.

Its loss widened to $112.4 million, or $1.11 per share, for the three months ended Sept. 30. That compares with a loss of $47.1 million, or 47 cents per share, in the prior-year quarter. Analysts expected a smaller loss of 37 cents per share, according to FactSet.

Revenue fell 10 percent to $805.4 million from $898 million last year. Analysts expected $893.2 million. Revenue in stores open at least one year, a key retail metric, fell 8.4 percent.

Separately, the company named Paul Rutenis as senior vice president, chief merchandising officer and Janet Fox as senior vice president of global sourcing. Rutenis had been merchandising manager for J.C. Penney's home division, while Fox was previously a sourcing executive at athletic wear maker Under Armour.

Shares fell 79 cents, or 22.4 percent, to $2.73 in midday trading. The stock had fallen almost 60 percent so far this year.

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