RadioShack Corp. said its fiscal first-quarter loss widened as the struggling retailer continued to burn through cash and suffer a decline in consumer electronics demand, the Wall Street Journal reported today. Shares fell 16 percent to $1.30 in recent premarket trading as the company's results were worse than analysts had projected, same-store sales plunged 14 percent and customer traffic flagged. "Overall, our first-quarter performance was challenged by an industry-wide decline in consumer electronics and a soft mobility market which impacted traffic trends throughout the quarter," Chief Executive Joseph Magnacca said, specifically citing weakness in its mobile-phone business. If results don't improve, the company said it would be required to borrow more under its 2018 credit agreement, make additional cuts in spending and reduce its operating costs, including in employee headcount, according to a filing with the U.S. Securities and Exchange Commission. RadioShack had sought to shut down 1,100 of its 4,300 stores, but some of the company's lenders challenged the move. Under credit agreements, RadioShack can't close more than 200 stores this year without the approval of certain lenders.
