The struggling electronics retailer reported a wider-than-expected quarterly loss Tuesday that CEO Joseph C. Magnacca laid squarely on handset makers like Apple (AAPL). In a release, Magnacca said that customers just aren't coming into electronics stores because of "lackluster" interest in the "current handset assortment."
In the past quarter, RadioShack deeply discounted Apple's iPhone 5C and 5s to try to lure customers.
Both stores to have the biggest discounts on iPhone were RadioShack and best buy, both companies are struggling to get customers in stores? JG (@cashowtime) Jan. 7 at 09:01 AM
But the 5c and 5s phones weren't exciting enough -- even at the cheap prices -- to bring shoppers into the Shack. Comparable store sales fell 14% "driven by traffic declines and soft performance in the mobility business."
The company revealed a quarterly operating loss Tuesday of $98.3 million, or $0.97-per-share. That amount was four times the operating loss for the same period last year. The stock fell nearly 10% on the news to below $1.40.
RadioShack has credit that it can tap to stay afloat for a time. It has $423.7 million in "total liquidity," according to its earnings report. About $61.8 million of that is in cash and cash equivalents. It also has $361.9 million under a 2018 credit agreement.