RadioShack reports loss in Q1, stock at all-time low (USA)

American retailer RadioShack has reported a loss in its Q1 results owing to declining sales, particularly in U.S. stores and shares in the electronics retailer tumbled to an all-time low Tuesday, as reported by BusinessWeek.

As per the report, the chain’s troubles are symbolic of wider problems in the brick-and-mortar electronics industry. RadioShack and Best Buy Co. have struggled as buying habits increasingly move away from devices like computers and cameras to tablets and smartphones, which are less profitable for the retailer. Circuit City has already failed. Stores are also dealing with consumers window shopping then buying products for less from online competitors such as Amazon.com Inc.

RadioShack said that it is boosting its marketing efforts for its mobile products and plans to open about 50 new company-owned stores in Mexico this year in an effort to stimulate growth. The company said 2012 would be another challenging transition year.

For the first quarter, RadioShack lost $8 million, or 8 cents per share. That compares with a profit of $35.1 million, or 33 cents per share, a year earlier. RadioShack’s revenue for the three months ended March 31 dipped 1 percent to $1.01 billion from $1.02 billion, dragged down by lower sales from its company-run stores in the U.S. This was partially offset by the addition of 610 Target Mobile centers.

RadioShack Corp. has about 4,700 company-run stores in the U.S. and Mexico, 1,500 wireless phone centers in the U.S. and about 1,100 dealers worldwide. Its shares slipped 61 cents, or 10.2 percent, to $5.36 in afternoon trading. Earlier in the session the stock fell to $5.30, the lowest point in the company’s history. The previous low of $5.56 came in August 1992. RadioShack’s stock has dropped 40 percent so far this year.