RadioShack Q2 Income Declines 23.4%
Fort Worth, Texas, Weakness in wireless pushed down profits at RadioShack Corp. The 7,000-store chain posted net income of $52.3 million for the quarter ended June 30, down 23.4% from net income of $68.3 million in the previous year’s quarter. Total sales in the second quarter of 2005 were up 4% to $1.09 billion, compared to total sales of $1.05 billion for the previous year. Second-quarter 2005 comparable-store sales were down 1% vs. the prior year.
“Our profit decline in the second quarter was driven by lower comp-store sales and more specifically by weakness in our core store wireless business,” said David Edmondson, president and CEO. “Nevertheless, non-wireless product lines and key initiatives, such as our store standard operating procedures and new store format, are performing well and this gives us confidence in the future.”
Total wireless sales were up 2% due to growth in RadioShack’s kiosk channel offset by a decline in sales of wireless in its company stores. Most of the company’s seven merchandise platforms realized both a sales and gross profit dollar increase for the second quarter. Selling, general and administrative expenses were up, as planned, 7% due primarily to new growth channels such as kiosks.