The U.S. electronics retailer reported a net loss of $98.3 million, declining from a $28.0 million loss in the same period a year earlier.
RadioShack's sales have been on a steady decline since 2010 as competition mounts from the likes of Best Buy (BBY), Amazon.com (AMZN) and Wal-Mart Stores (WMT), who offer wider selections for lower prices.
The company's stock price opened 15% lower on the news, falling from $1.54 to as low as 1.32 in morning trade. Shares pulled up to $1.36 in mid-afternoon trading.RadioShack shareholders voiced their disgust with the direction of the company last week by rejecting the executive compensation package for a second year in a row. Nearly 55% of votes were cast against the compensation plan in a nonbinding referendum at the shareholder meeting, up from 53% a year earlier. "There's nothing that [Chief Executive Officer Joe Magnacca] has done that leads anybody to believe that he's the right guy to turn this business around," Anthony Chukumba, a New York-based analyst at BB&T, told Bloomberg. The company currently faces a bevy of structural issues that are creating a divide between the retailer and customers. For one, the stores are severely outdated. As consumers have migrated online, RadioShack continues to operate like a museum for vintage consumer electronics that were left behind in the 1990s. Consumers enjoy new, shiny objects to play with, a complete contrast to RadioShack, a store analysts have called "tired looking." With regards to the actual merchandise, RadioShack mostly sells cell phones, which is becoming a dangerously saturated category. The company's lack of aggressive expansion into tablets or even Internet radio is another testament to its failure to adapt in the post-Y2K environment. RadioShack announced plans in March to close up to 1,100 underperforming stores, which could be a small fraction of the closings to come if the electronic retailer doesn't make meaningful adjustments, fast.
RSH data by YCharts
Google to Buy Skybox Imaging for $500 Million
Pot Sales Don't Hurt Beer Business: StockTwits.com
Vice Media's Shane Smith Is the Future That Time Warner Wants to Own At the time of publication, the author had no position in any of the funds mentioned. Follow @macroinsights This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV