Comps not stirring up The Shack
FORT WORTH, Texas -- A decline in T-Mobile postpaid wireless sales, television converter boxes, digital televisions and digital music players contributed to a first-quarter comps drop of 0.6% at RadioShack. However, strong sales in its kiosk division helped drive RadioShack's total first-quarter sales up 2.1% to $1.06 billion, compared with $1.04 billion for the 2010 first quarter.
Net income for the first quarter declined to $35.1 million, or 33 cents per diluted share, compared with net income of $50.1 million, or 39 cents per diluted share, reported for the same period last year.
Jim Gooch, president and CFO, said, "Despite a challenging economy and tough weather conditions, our first-quarter results were generally in line with our internal expectations. We expect the softness in our business to continue during the second quarter before we begin to see the benefits of our merchandising and sales initiatives improving both revenue and income trends in the back half of the year. In addition, growth in our mobility business will be aided by our tablet computer offerings, which are being introduced this month."
RadioShack currently expects full-year 2011 diluted EPS to be in the range of $1.60 to $1.80 per share (previous guidance was for full-year 2011 diluted EPS in the range of $1.60 to $1.90). RadioShack continues to expect total net sales and operating revenues will increase in the low- to mid-single-digit percent range in 2011.