RadioShack’s Q1 loss widens; updating image and stores
Fort Worth, Texas -- RadioShack Corp. on Tuesday reported a bigger-than-expected first quarter loss on weak sales of wireless phone contracts. The company also reported that it is updating its brand and will begin remodeling select locations with a new look and feel over the next few weeks.
Joseph C. Magnacca, a former Walgreens executive who became CEO of RadioShack in February, remarked on the initial priorities and initiatives underway. Last week, he named a new chief marketing officer and a new SVP store concepts.
"We are rolling out a new brand image, and you will start seeing changes in our branding and advertising soon,” he said. “For our physical stores, work is underway and will begin with remodeling strategic New York City locations with a new look and feel over the next few weeks. This work will also touch our online and mobile channels over time so our customers receive a compelling, continuous and seamless experience however and whenever they shop with us.”
RadioShack’s loss in the quarter ended March 31, widened to $43.3 million from $8 million a year earlier. Sales fell 7% to $849 million, also missing analysts' estimates.
The new CEO sounded an upbeat note.
“RadioShack has a uniquely strong franchise,” Magnacca said. “We have a powerful brand that has stood the test of time over nine decades and has a large, loyal customer following. We have strong relationships with leading vendors and a portfolio of trusted private brands that offer highly innovative technology products. We have a vast network of more than 4,300 company-operated stores and approximately 1,000 dealer outlets across the U.S. We have an established international presence in more than 25 countries, including 270 company-operated stores in Mexico. Most importantly, we have approximately 30,000 employees who are genuinely focused on delivering solutions for our customers."