Wireless Leads RadioShack To 26% Profit Gain - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile

Wireless Leads RadioShack To 26% Profit Gain

The retailer's strategy of beefing up its mobile phone offerings led the company to earn $75.7 million in fourth-quarter net income.

RadioShack's strategy of beefing up its mobile phone offerings appears to be paying off, as the firm reported a 26% gain in its fourth-quarter earnings.

Drawing on its longtime strength among electronics hobbyists and walk-in consumers, RadioShack has been adding more brand name merchandise to challenge big box retailers like Best Buy and Wal-Mart.

"In 2009, we leveraged our financial and operational strength to relaunch our brand, focusing more clearly on our leadership in the areas of mobility and innovative technology," said Julian Day, RadioShack chairman and CEO, in a statement. "The addition of a third national wireless carrier, T-Mobile, and the Apple iPhone, further strengthen our platform for the future."

RadioShack reported a 4.7% increase in the quarter's sales to $1.32 billion, up from $1.26 billion in the previous year's fourth quarter. Net income was $75.7 million. Revenue and profits for the full year were $4.28 billion and $205 million, respectively.

Day noted that the firm is rebranding its name as The Shack. In addition to deals with T-Mobile and Apple, RadioShack is planning to deploy wireless kiosks in many Target and Sam's Club stores in 2010.

After the financial results were released, RadioShack stock dropped more than 6% in early trading Tuesday as shareholders reacted to negative parts of the quarterly report. The company said there were sales declines in accessories, including GPS products, batteries, digital-to-analog converter boxes, and some video game accessories. The company said there was a $33.5 million decrease in kiosk sales brought about partially by the closure of its Sprint-branded kiosks in August of 2009.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
How to Create a Successful AI Program
Jessica Davis, Senior Editor, Enterprise Apps,  10/14/2020
News
Think Like a Chief Innovation Officer and Get Work Done
Joao-Pierre S. Ruth, Senior Writer,  10/13/2020
Slideshows
10 Trends Accelerating Edge Computing
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/8/2020
White Papers
Register for InformationWeek Newsletters
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Video
Current Issue
[Special Report] Edge Computing: An IT Platform for the New Enterprise
Edge computing is poised to make a major splash within the next generation of corporate IT architectures. Here's what you need to know!
Slideshows
Flash Poll