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RadioShack loss widens as market challenges continue

FORT WORTH, Texas — RadioShack reported that total sales for its third quarter were $1 billion, compared with $1.03 billion last year. Comparable-store sales were down 1.6%.

The retailer reported a net loss of $47 million, or 47 cents per diluted share, compared with net income of $0.3 million last year.

Dorvin Lively, interim chief executive officer of RadioShack Corp., said, "Overall, our business performed below expectations. I am most disappointed in our post-paid mobility business where we saw a continued decline in margin performance. However, I am pleased with the progress we are making in improving and driving growth in our high-margin Signature platform, which generated its third consecutive quarter of sales growth and our pre-paid mobility business, which included the launch of the RadioShack branded line of phones.  Importantly, we took action to reduce our overall SG&A cost structure during the quarter.

Lively said RadioShack will remain focused on improving profitability despite a challenging market.

 

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