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RadioShack Struggles To Keep Losses From Widening

Radioshack's 1st quarter loss increased as they continue to struggle with consumer electronics demand. Not only did the results fall below analyst expectations, the same-store sales also fell 14% and shares fell 9% in pre-market trading. With the bad numbers, the CEO still claims that they are making progress as they plan to reveal new products while cutting costs and remodeling the stores.

The company originally had plans to close down 1/4th of its stores, but was opposed by some of the lenders. Due to credit agreements, RadioShack is unable to shut down more than 200 stores this year without approval from said lenders. Radioshack showed a loss of $98.3 million (.97/share) compared to $28 million (.28/share) last year. Their revenue also dropped 13% reaching $736.7 million.