RadioShack profit drops 25% in Q4
Fort Worth, Texas -- RadioShack Corp. on Tuesday said its fourth-quarter net income fell by 25%, which was toward the low end of the company's already reduced guidance.
The company reported net income of $57 million in the October to December period, down from $75.7 million a year ago.
Revenue rose nearly 4% to $1.37 billion from $1.32 billion last year, matching analyst expectations and the company's forecast. Same-store sales rose 1.3%, driven primarily by higher postpaid wireless sales, particularly sales of smart phones. Higher sales of prepaid wireless handsets, laptops and wireless accessories also contributed to the increase.
RadioShack said it expects operating income from its kiosks segment will decline by about $10 million to $15 million in 2011, reflecting the impact of ramping up its new kiosks in Target stores and discontinuing its ones in Sam's Club stores. Growth is expected to resume in 2012.
RadioShack had warned in January that poor sales of T-Mobile USA phones and a shift towards cheaper phones hurt its fourth-quarter performance. RadioShack said it has informed T-Mobile that the company considers it to have "materially breached" its contract.