Radio Shack Corp. posted quarterly losses Tuesday of $53 million (53 cents per share), down from a net loss of “only” $21 million for the second quarter of 2012.
Operating losses deepened to $41 million from $14 million a year ago, even as same-store sales improved for the first time since 2010 (1.3 percent).
Gross profits slipped to $314 million from $340 million last year, and the profit margin shrank to 37.2 percent of net sales, versus 40.1 percent last year.
Coupled with the quarterly earnings report was the announcement that CFO Dorvin D. Lively had left the building (actually he went to Planet Fitness, a health club franchise), and that he was being replaced by Holly F. Etlin of AlixPartners, a company that specializes in corporate turnarounds.
“Looking ahead,” said CEO Joseph C. Magnacc, “we will be guided by the five pillars of our turnaround strategy – repositioning the brand, revamping our product assortment, reinvigorating our stores, operational efficiency and financial flexibility.”
Radio Shack Spirals Downward; Turnaround Expert Replaces CFO
