(Corrects to fix typos in paragraph 1)
* Posts ninth straight quarterly loss
* Sales have been falling since 2010
* Cash down 66 pct in three months ended May 3
* Same-store sales fall 14 percent
* To close 200 stores per year over next three years
* Shares fall as much as 14 percent in early trading
By Devika Krishna Kumar
June 10 U.S. electronics retailer RadioShack
Corp reported its ninth straight quarterly loss and is
burning through cash as it struggles to sustain its turnaround
efforts, which so far have failed to bear fruit.
RadioShack's shares fell as much as 14 percent amid doubts
about the company's long-term prospects as a series of executive
exits have added to the competitive pressure it faces from
stores offering a wider selection at lower prices.
The company has been slashing prices to outdo retailers such
as Best Buy Co Inc, Amazon.com Inc and Wal-Mart
Stores Inc, yet its sales have been falling since 2010.
"The (RadioShack) brand is tired, and they don't have the
capital to re-position the brand," Wedbush Securities analyst
Michael Pachter said, adding that the company can turn things
around only by drawing customers back into its stores.
The company's net sales fell a steeper-than-expected 13
percent and sales in stores open for at least a year fell 14
percent in the first quarter ended May 3.
RadioShack ended the quarter with liquidity of $423.7
million, lower than the $554.3 million as of Dec. 31. Its cash
and cash equivalents plummeted by a third to $61.8 million in
the same period.
"... We increasingly believe time could be running out for
the company," BB&T Capital Markets analyst Anthony Chukumba
wrote in a note.
RadioShack has been trying to reposition itself to connect
with tech-savvy young shoppers by signing up celebrities for
promotions and opening "concept stores", which allow shoppers to
try a product before making a purchase.
While these stores have been doing well, only 38 of its
4,250 stores in the United States are concept stores.
The company plans to close 200 stores per year over the next
three years, Chief Financial Officer John Feray said on a
That is lower than the 1,100 closures it had announced in
March as it failed to negotiate favorable terms with its
In a sign of growing investor frustration with the company,
RadioShack's shareholders rejected its executive compensation
plan for the second year in a row, a filing showed on Monday. (link.reuters.com/hyc99v)
The company's first-quarter net loss widened to $98.3
million, or 97 cents per share, from $28.0 million, or 28 cents
per share, a year earlier.
RadioShack's adjusted loss of 98 cents per share fell far
short of the average analysts' expectation of a loss of 52 cents
per share, according to Thomson Reuters I/B/E/S.
The company's shares were down 9.7 percent at $1.39 in late
morning trading on the New York Stock Exchange. The stock has
lost more than half its value in the year to Monday's close.
(Editing by Kirti Pandey, Maju Samuel and Savio D'Souza)