RadioShack (RSH) reported a sharply wider fiscal first-quarter loss, as the struggling electronics chain reported weak demand for mobile devices, resulting in lower sales and traffic.
The retailer, which sells mobile devices, accessories and other consumer electronics, has reported annual losses the past two years and has struggled as it faces steep competition from larger rivals that sell the same products but typically with a wider selection. Those competitors include Amazon.com (AMZN) and Best Buy (BBY).
RadioShack’s overall sales for the latest period again declined, tumbling 13% to $736.7 million, worse than the $751 million projected by analysts. Same-store sales decreased 14%.
Like Best Buy, RadioShack said the latest results were hurt by a lack of consumer interest in the available assortment of mobile devices, as well as higher promotions for wireless devices. Best Buy late last month said there would be ongoing softness in the mobile category as customers await highly anticipated new products that are due for release later this year.
RadioShack has aimed to slash costs while also remodeling some of its stores in a bid to bolster sales. Earlier this month, the company announced a pact to launch “RadioShack Labs,” which aims to add vibrancy to the retailer’s shelves by giving inventors and startups an opportunity to develop products that could soon be stocked in RadioShack’s stores.
For the quarter ended May 3, RadioShack reported a loss of $98.3 million, or 97 cents a share, compared with a prior-year loss of $28 million, or 28 cents a share. Excluding store-closure costs and other items, the adjusted loss for the latest period totaled 98 cents. Analysts surveyed by Bloomberg had expected a loss of 61 cents.