RadioShack’s Q4 gross margin plunged to 35 percent from...
RadioShack’s Q4 gross margin plunged to 35 percent from 41 percent a year earlier on a “significant decline” in sales of Sprint services, CEO James Gooch said in a preliminary earnings report. RadioShack’s Q4 sales mix shifted toward “certain lower…
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margin smartphones and mobile devices” and as mobile products made up a larger portion of its Q4 sales because of an increase in the cellphone kiosks that RadioShack operates inside Target stores, it said. Same-store sales at company-owned outlets rose 2 percent and there was a 6 percent gain in revenue to $1.39 billion from $1.31 billion a year earlier, the company said. RadioShack’s Q4 mobile sales increased 16 percent, while CE sales fell 30 percent. Signature platform revenue improved one percent in Q4, due to strong headphone, tablet accessory and warranty sales, the company said. RadioShack’s Q4 earnings are expected to be 11-13 cents a share, down from 51 cents a year ago, the chain said. Incremental sales from RadioShack’s new distribution agreement with Verizon, coupled with strong revenue from AT&T, tablets and e-readers, were offset by “significant declines in our Sprint business,” Gooch said.