RadioShack Warns on 2Q Earnings
NEW YORK (AP) _ Consumer electronics retailer RadioShack Corp. warned that profits for its fiscal second quarter will be below Wall Street expectations because of slower sales.
In a press release, the Fort Worth, Texas-based retailer said Tuesday that earnings per share for the three months ended June 30 will be between 25 cents to 27 cents per share.
Analysts polled by Thomson Financial/First Call had projected 34 cents per share.
Shares of RadioShack fell $1.02, or 3 percent, closing at $32.85 on the New York Stock Exchange. After losing another $3.79, shares finished up extended trading at $29.06 each.
The company issued the warning after the markets closed.
RadioShack said that in April sales at stores open at least a year, known as same-store sales, were down 2 percent. Same-store sales are the best indicator of a retailer’s health.
Same-store sales in May are expected to be unchanged from a year ago, RadioShack said.
The company also stated that gross margins would be lower than expected in the second quarter primarily due to lower gross margins in the wireless communications category.
Management also noted that annual diluted earnings per share from ongoing operations for its fiscal year, ending Dec. 31, could decline approximately 10 percent from a year ago.
Last year, RadioShack posted $1.84 per share, and for this fiscal year, ending Dec. 31, analysts polled by Thomson Financial/First Call expected $1.91 per share.