|
Revenue fell 3 percent in 2013 and 7 percent in its most recent January-to-March quarter. Revenue in stores open at least one year declined 5.7 percent this quarter from a year ago. That is a troubling sign for any retailer as the measurement removes the volatility of results from stores that were recently opened or closed throughout the year. It provides a peek at the overall health of a brand. RadioShack also is facing investor fears about its liquidity. They sent shares down sharply Thursday on a website report that the company was meeting with advisers because it was having liquidity trouble. To reassure investors, the company issued a statement saying that it had $820 million in liquidity at the end of the first quarter and was meeting with advisers only to look at ways to strengthen its balance sheet. Wedbush analyst Michael Pachter said the new steps are "promising," but RadioShack "may run out of time." "We expect the company to have difficulty refinancing its debt, and expect cash burn to continue for the next several quarters, while its new initiatives are likely to require ever higher levels of working capital," he said in a note to investors Wednesday. A clearer picture of how the early days of the restaging of the 92-year-old company is going will appear when RadioShack reports second-quarter results on Tuesday. Analysts expect RadioShack to report a loss of 25 cents per share on revenue of $814.7 million, according to FactSet. In the prior-year quarter, RadioShack reported a loss of 21 cents per share on revenue of $953.2 million.
[Associated
Press;
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.