Boston, MA 06\/11\/2014 (wallstreetpr) \u2013 The prevalent weakness in mobile business and consumer electronics has weighed down heavily on the performance of RadioShack Corporation (NYSE:RSH)<\/b>, as the retailer released its first quarterly reports stating wider than expected net loss and revenue slump.<\/p>\n
Online Retailers<\/b><\/p>\n
RadioShack Corporation (NYSE:RSH)\u00a0reported a net loss of $98.3 million, or $(0.97) per share during the first quarter, widely loosing to beat the market consensus of (0.52) per share. Revenues, too, nosedived by as much as 13%\u00a0 to $736.7 million over the last one year, as against the analyst estimate of $767.5 million. The company posted decline in its same-store sales that were down 14% , majorly impacted by lower customer traffic and a poor mobile business show. During the conference call, the company’s CEO, Joseph C. Magnacca said that they are working to develop a pipeline of new offerings and stepping up its partnerships with companies like PCH and Quirly to beat the competition from online and discount retailers.<\/p>\n
A data from Kantar Retail shows that most of the electronic consumers went online to buy 25% of their electronic needs, signifying the threat to retailers. The inability to bring new phones on the shelves quickly has drastically impacted the number of footfalls into electronic stores, while maintaining revenue targets remain a bigger concern.<\/p>\n
Credit Line Borrowing<\/b><\/p>\n
Steep losses during the year has forced the company to dig into its credit line. The company borrowings are nearly $35 million as of Monday, while it said that it could make further borrowings this year. The Wall Street Journal reports that the retailer is also issuing a way more number of letters of credit to its suppliers, as the number grew from $55 million to $67.8 million this year. As RadioShack confirms to have cash reserves sufficient to meet its obligations for the next 1 year, the projection signals that\u00a0RadioShack Corporation (NYSE:RSH) would strive to improve sales and cut back costs in order to boost its margins.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/11\/2014 (wallstreetpr) \u2013 The prevalent weakness in mobile business and consumer electronics has weighed down heavily on the performance of RadioShack Corporation (NYSE:RSH), […]<\/p>\n","protected":false},"author":32,"featured_media":25406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236,263],"tags":[1253,4857],"stock_ticker":[],"class_list":["post-25400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-technology","tag-nysersh","tag-radioshack-corporation-nysersh","entry"],"acf":[],"yoast_head":"\n