Radio Shack's financial numbers continue to drop, the retailer announced Tuesday.
According to a press release, the company's total net sales and operating revenues from the first quarter of the fiscal year fell $736.7 million from $848.4 million in 2013. Sales from in-store traffic and the company's mobility entity also decreased 14 percent. Radio Shack's operating loss spiked from $10.3 million to $81 million.
"Overall, our first quarter performance was challenged by an industry-wide decline in consumer electronics and a soft mobility market which impacted traffic trends throughout the quarter," CEO Joseph Magnacca said in a statement. "In particular, our mobility business was weak due to lackluster consumer interest in the current handset assortment and increased promotional activities across the industry including the wireless carriers. This resulted in disappointing sales and gross margin performance."
Radio Shack's CEO said the company is progressing with its turnaround strategy.
"We are also successfully reducing our costs, with a particular focus on removing expenses that do not impact the customer experience, and have taken steps to lower our corporate headcount, leverage technology, and reduce discretionary expenses," Joe Magnacca said in a statement. "Our entire team is focused on executing our vision, adapting to the environment, managing our balance sheet, and driving sustainable change."
Magnacca also said the retailer is optimistic about the future.
"Even in this environment, we are making progress on our turnaround strategy. We are building the pipeline of new products that will bring differentiation and newness to our stores in the form of high-margin private brand and exclusive items, including those from new partnerships like Quirky and PCH," Magnacca said in the statement. "Our concept stores continue to drive strong sales growth, and we have begun to execute our 100-store remodel program to scale the successful components of our concept stores across our network. We have continued to drive our new Do It Together brand campaign, which highlights one of our greatest strengths, our store associates and the knowledge and solutions they provide to our customers every day."
According to USA Today, Radio Shack chose to keep some of its 1,100 store, originally slated for closure open. The company will instead work with bankers to correct the retailers financial situation.
The retailer will also operate on a new financial quarter. The fiscal year will now end on the Saturday closest to Jan. 31. The change is meant help management keep better track and gauge Radio Shack's progress throughout the year.
