Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.
spectacularquan50

RadioShack posts 8th straight quarterly loss, may close 1,100 stores

It not too long ago announced the partnership along with Quirky, the The Huge Apple invention company, in order to stock its goods within RadioShack stores. Tuesday's financial results hit the actual retailer's stock hard. He said the actual chain would also address problems having its inventory, including any concentrate on keeping items stocked which it promotes inside once a week ads.

RadioShack said the break buying season produced lower shop traffic despite aggressive discounting to entice shoppers for the chain's more than 5,000 locations. "It is truly a dinosaur.... Your minute-long spot poked http://www.blackcams.info fun at this perception as well as featured 1980s celebrities -- Erik Estrada associated with CHiPs, horror-movie fictional serial killer Jason Voorhees and Alf the actual alien -- ransacking a RadioShack outlet to "get their particular shop back." The business failed to supply many details with regards to which in turn retailers could be closed or perhaps the quantity of employees could be affected. The Particular objective is to allow shoppers for you to test out gadgets along with interact along with sales staff. Despite the particular closures, the organization will nonetheless possess more than 4,000 retailers in the U.S. Like many bricks-and-mortar retailers, RadioShack is actually struggling to reverse declining foot traffic to its shops and also fight competition using his or her company retailers, which includes Amazon.com. The Forth worth organization stated it were built along with a net loss involving $191.4 million for the fourth quarter -- greater than triple what it lost a year earlier. Magnacca said in a conference contact using analysts Tuesday. "It's an extremely difficult environment regarding them, for you to the least." The advertisement "was among the particular largest media events inside our company's history," RadioShack Chief Executive Joseph C. Ultimately, I believe it'll go out involving business."


But the particular timing in the Super Bowl advertisement might have been as well late.
"The stability sheet is at halfway decent shape ... and provides these people a lot more time," he said.
Its monetary results, however, underscored some of the problems the retailer will be attempting to overcome -- one of them the perception that the chain, that offers held it's location in enterprise a lot much more than 90 years, is actually outdated. ricardo.lopez@latimes.com


The "RadioShack turnaround will consider time," said Magnacca, who was hired as CEO a little more than annually ago.


Magnacca, however, remained optimistic and stated the organization plans to update dozens associated with its stores. He mentioned the ad generated high ranges of consumer engagement and was among probably the actual most talked-about Super Bowl ads last month. For now, though, the company's relatively strong stability sheet will maintain the organization going, he said. RadioShack posts 8th straight quarterly loss, may shut 1,100 stores - latimes.com
Morris Ajzenman, an analyst with Griffen Securities Inc., had been pessimistic regarding RadioShack's future. Twitter: @rljourno. Magnacca blamed weak need for its mobile phones "and several operational issues." Another location the business desires to improve can be promoting new, exclusive items in its stores. Its fourth-quarter revenue slumped 20% to be able to $935.4 million.
"RadioShack's moment offers passed," he said. The Particular company features a lot more than 27,000 employees worldwide. Its shares closed Tuesday down 47 cents, or 17.3%, from $2.25 after hitting the lowest of $2.19.
RadioShack reported total liquidity regarding $554.3 million, such as nearly $180 million in cash.
Exhibit A: last month's Super Bowl commercial

Don't be the product, buy the product!

Schweinderl