As part of its turnaround plan, RadioShack has identified 480 to close, 432 of which have already been shut. The company currently operates about 6,000 US units, about 750 of which it plans to renovate by the holiday season.
Same-store sales fell 3% year over year for the quarter, which ended on June 30. Total sales rose 1%, to $1.1 billion. Wireless sales increased by 2%, accessories were up by 9%, and personal electronics jumped 20%, led by MP3 players and satellite radios. The company will begin selling flat-panel televisions at all of its stores by September.
RadioShack's $3-million drop in income during the quarter was compared to a $52-million profit during the same year-ago period. Costs related to its turnaround cost the retailer $21 million and the settlement of wage- and-hour class action lawsuits resulted in an $8.5-million charge.
Executives have blamed poor performance in the cell-phone business for some of the company's woes. Management is also currently replacing some of its slower-selling products, like metal detectors and music keyboards, with stronger items.
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