FORT WORTH, Texas-Electronics retailer RadioShack Corp. again cut its revenue expectations due to sluggish mobile-phone sales, as well as a slowdown in its battery sales.
“Business trends have underperformed our expectations,” said David Edmondson, the company’s president and chief executive officer-elect. “This has been driven by a recent deceleration in wireless sales in our core stores and, to a smaller extent, underperformance in our battery business.”
RadioShack said it will not meet its previously stated forecast of 39 cents to 41 cents in earnings per share. The company now believes its first-quarter earnings per share will be between 30 cents and 34 cents. Further, the company said it won’t meet its full 2005 earnings-per-share guidance. Analysts polled by Thomson First Call expected RadioShack to post around 40 cents earnings per share for its first quarter.
RadioShack blamed its sluggish phone sales on its inability to capitalize on sales of family plans, according to reports, which comprise around 50 percent of new phone sales.
RadioShack previously lowered its expectations last month.
