RadioShack Swings to 3Q Profit
Fort Worth, Texas, RadioShack Corp. said Monday it swung to a third-quarter profit on lower operating expenses, improved inventory management and a better product mix.
The company reported a profit of $46.3 million compared with a loss of $16.3 million a year ago. Total operating expenses declined to $413 million from $502.8 million.
The company said its gross margin rate rose to 51% from 46.1% on improved inventory management and a more profitable mix of products.
Revenue for the quarter slipped to $960.3 million from $1.06 billion in the prior-year period on lower sales in the Sprint post-paid wireless and related wireless-accessory businesses, partially offset by strong results from prepaid wireless phones and global-positioning systems.
Same-store sales fell 8.6% during the quarter.
RadioShack CFO Jim Gooch said in a statement that the company anticipates fourth-quarter results to be better than the year-ago period despite a challenging trading environment.