Fort Worth, Texas -- Slower-than-expected sales in the second quarter has forced RadioShack to lower its financial expectations for the three months ending June 30.
The retailer cited a 2 percent decline in comp-store sales in April and anticipated flat comp-store sales in May as the primary reasons for re-evaluating its guidance.
"Our business has faced some difficult challenges during the first half of this year, and it now appears we will not have enough momentum to achieve our second-quarter expectations," said Leonard Roberts, chairman/CEO.
RadioShack said gross margins would be lower than expected in the fiscal second quarter, primarily due to lower related gross margins in the wireless communications category.
Earnings per share for the second three months are anticipated at between 25 and 27 cents per share, while annual diluted earnings per share from ongoing operations for fiscal 2001, ending Dec. 31, could decline about 10 percent from the prior year, said RadioShack.
"We do expect improvement in the second half of the year," said Roberts, "enabling us to achieve earnings-per-share levels about equal to the second half of last year."