Boston, MA 06/11/2014 (wallstreetpr) – RadioShack Corporation (NYSE:RSH) changed the reporting pattern for the fiscal year 2015. It will run from February 2, 2014 to January 31, 2015. As a result, the Company considered the period between January 1, 2014 and February 1, 2014 as part of FY2014. The change primarily allows to measure the performance efficiently and offers a better comparability with its peers.
RadioShack recently reported the financial result for the three months period ended May 3, 2014. The Company experienced a challenging first quarter due to declining industry trends in consumer electronics and soft performance over mobility business.
RadioShack’s overall revenues were down by 14% to $736.7 million from $848.4 million in 1Q2014. The decline was, as a result, of decreased in traffic and lower sales volume in the mobility business across its comparable store. The price competition over handset offerings in both prepaid and postpaid segment compressed RadioShack Corporation (NYSE:RSH)’s adjusted gross margin from 40.2% in to 35.9% in 1Q2015.
During the period, operating expenses continued remain high due to declining sales volume that further squeeze the adjusted operating loss to $82 million compared to operating loss of $11 million in 1Q2014. Accordingly, it reduced the adjusted net loss from the operation to $0.98 per share versus adjusted net loss of $0.26 per share in 1Q2014.
During 1Q2015, RadioShack closed 22 stores and expects to shut down ~200 stores in coming periods.
As of May 3, 2014, RadioShack has total liquidity of $423.7 million. It includes cash and cash equivalents of $61.8 million and $361.9 million of available credits. The Company’s total debt as of May 3, 2014 was $614.5 million due by 2018 and 2019.
RadioShack focuses on the development of new products that help to bring newness to its stores and differentiate itself with high margin private brands. It includes products from its new partnerships with Quirky and PCH. RadioShack Corporation (NYSE:RSH) believes that the stores continue to provide sales growth; therefore, it initiates remodeling program over 100 stores to scale up their performance.