RadioShack surprises with loss, suspends dividend |
Reuters - Jul 25, 2012 |
Consumer electronics chain RadioShack Corp (RSH.N) reported an unexpected second-quarter loss on Wednesday as its bet on the smartphone business brought more customers into the store but cut into margins.
The company also suspended its dividend as it plans to refinance and pay down debt.
The news dragged its shares down nearly 30 percent to their lowest-ever level, and raised new concerns about the future of the retailer, which recently lost its merchandising chief as it gears up for the all-important holiday season.
"They are kind of caught between a rock and a hard place," said BB&T Capital Markets analyst Anthony Chukumba. "They have hitched their wagons to wireless and it looks like that was not necessarily the right bet. Having said that, I am not sure what else they could have done."
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- Posted: 2012-07-25 13:00:53
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