RadioShack swings to loss in Q4
Fort Worth, Texas -- RadioShack Corp. reported a greater-than-expected net loss of $63.3 million in the fourth quarter ended Dec. 31, compared with a profit of $11.9 million a year earlier.
Total sales edged down to $1.3 billion compared to $1.39 billion last year. Comparable-store sales fell 7%, hurt by a decline in the performance of its postpaid wireless business.
In a regulatory filing on Tuesday, the chain said that its cash and cash equivalents fell to $535.7 million at the end of 2012 from $591.7 million a year ago. The chain said its liquidity may be hurt further in 2013 as it may have to issue letters of credit under a 2016 credit facility.
Analysts said that RadioShack’s declining performance pointed to the challenge facing its new CEO, Joseph Magnacca, who is trying to transform the struggling electronics chain into a specialty retailer of mobile devices. Magnacca took the reins of RadioShack on Feb.11.
"Looking ahead, we will be focused on stabilizing the profitability of our business as well as our growth initiatives,” said Dorvin D. Lively, EVP, CFO and chief administrative officer of RadioShack Corp. Lively said. “With the addition of Joe and other new senior executives, we now have a strong management team in place focused on rebuilding the business and leading the company into the future."
For the full year, total net sales and operating revenue were $4.3 billion, compared to $4.4 billion last year. Same-store store sales fell 3.5%.