RadioShack profit tops view, sales rise
NEW YORK (Reuters) - RadioShack Corp (RSH.N) reported a higher-than-expected quarterly profit on Thursday on a surprise increase in sales, but the electronics retailer said the economic environment continues to be challenging.
Net earnings were $41.4 million, or 32 cents a share in the second quarter, compared with $47 million, or 34 cents a share, a year earlier.
Adjusted for a charge tied to the lease for its corporate headquarters and a gain from a tax settlement, RadioShack earned 35 cents a share, topping analysts' average expectation of 26 cents a share, according to Reuters Estimates.
Sales at RadioShack, which faces fierce competition from the likes of Best Buy Co Inc (BBY.N), rose 6.4 percent to $995 million, breaking a pattern of weak sales in several past quarters.
Sales rose 7.5 percent in company-owned stores, while its online business reported a 29.8 percent increase.
Same-store sales rose 6.9 percent in the quarter, helped by demand for items like GPS devices, video games and prepaid wireless phones, and an improvement in its AT&T post-paid business.
RadioShack noted that its Sprint post-paid business was weak and continued to hurt sales. Excluding that business, its quarterly same-store sales would have increased 12.7 percent, the company said.
(Reporting by Aarthi Sivaraman; Editing by Derek Caney and Steve Orlofsky)
