RadioShack's Losses More Than Double

RadioShack (NYSE: RSH  ) reported its third-quarter earnings today, revealing a drop in almost all key financial metrics. Revenue sank 11% from the third quarter of 2012, from $898 million to $805.4 million.

As revenue fell, RadioShack's cost of products sold rose to $562.7 million, which caused the company's gross profit to drop 28.7% from the same period last year. RadioShack's net income dipped even further into the red at negative $112.4 million, more than twice where it was this time in 2012.

The company said it "continues to address significant legacy issues as it engineers a comprehensive operational turnaround driven by the Company's five pillars: reposition the brand, revamp the product assortment, reinvigorate the store experience, operational efficiency and financial flexibility."

CEO Joseph Magnacca said in statement that the quarter "reflects our strategic decision to accelerate the improvements to the product assortment in our stores by removing duplicate and unproductive inventory. The lower inventory valuations for these products and projected disposal costs resulted in an expected increase to our cost of products sold this quarter."

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  • Report this Comment On December 17, 2013, at 3:27 PM, tbenner wrote:

    One of the products they discontinued is their Supermount tape. Radio Shack has given me one more reason to not go there. It's really too bad.

  • Report this Comment On December 17, 2013, at 5:47 PM, sac7000 wrote:

    It's been over 40 years since I was a manager-trainee at a Radio Shack in San Jose. I sold stereos and CB radios but the best part was these two guys with beards and long hair who would quickly become the founders of Apple Computer. A time when customer came into my store carrying a surplus jet helmet and asked me if I could wire it up to connect to a CB radio. His name was Bob Truax and the helmet would be used by Evil Kneival who would attempt to jump the Snake River Canyon. Yes, those days are gone but the memories of the old store and Lewis Kornfield are still alive.

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