RadioShack (NASDAQOTH: RSHCQ ) 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."