RadioShack Corporation reported a larger-than-expected quarterly loss on Thursday, as the struggling electronics retailer sold fewer smartphones and mobile subscriptions. The three-month period ending Nov. 1 marked the company’s eleventh straight quarter of losses.
Overall sales at RadioShack stores also fell and the company said it will implement a number of cost-cutting measures to save $400 million annually to help reduce losses. The retailer’s revenue was also drained by an ongoing fight over repayment plans with lenders, who blocked a plan to close 1,100 underperforming stores, according to a Bloomberg report. RadioShack’s stock has dropped to one quarter of its value at the beginning of the year.
Most of RadioShack’s 13 percent decline in sales was due to a drop-off in mobile-phone sales, which fell 25 percent from the same period one year ago. While stores saw a boost in Thanksgiving weekend sales, phone sales fell 27 percent compared to the same period last year.
The retailer avoided questions from investors by cancelling a question-and-answer session scheduled to follow its conference call to discuss earnings.
CEO Joe Magnacca has instituted a number of cost-cutting measures, including a halt on 401(k) matches for employees, according to Bloomberg, and plans to save $295 million by pulling back on marketing efforts, cutting store operations and management staff, and closing stores.
Magnacca has also overseen a remodeling effort in select stores, including interactive displays, in-store repairs and exclusive products. Revamped stores saw a 12 percent increase over comparable locations during the company’s third quarter, he said, with sales up 35 percent during the Thanksgiving weekend, excluding mobile.