RadioShack posts surprise Q2 loss, suspends dividend
Fort Worth, Texas -- RadioShack Corp. reported Wednesday its worst quarter since 1996, posting a loss of $21 million in the second quarter compared with a profit of $24.9 million in the same quarter last year.
Sales inched up 1.2% to $953.2 million in the quarter, missing Wall Street’s forecasted $970.4 million in revenue, and same-store sales were flat.
Analysts say the electronics retailer has made a tactical error in placing its bets on selling tablets and smartphones, which ramped up selling costs some 16% in the second quarter.
RadioShack said Wednesday it would not pay a dividend – for the first time in 25 years.