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RadioShack profit dips as it closes some kiosks

/ Source: The Associated Press

RadioShack Corp. said Monday that its third-quarter profit slipped 24 percent as the company closed some kiosks and dealt with a continued pullback in consumer spending.

The electronics retailer earned $37.4 million, or 30 cents per share, compared with $49.1 million, or 38 cents per share, a year earlier.

The performance just missed the 31 cents-per-share estimate of analysts polled by Thomson Reuters. Analysts' estimates generally exclude one-time items.

Sales and operating revenues for the three months ended Sept. 30 declined about 3 percent to $990 million from $1.02 billion.

Analysts predicted sales of $961 million.

Sales at company-run stores and kiosks open at least a year dipped 2.9 percent with softness in sales of digital-to-analog converter boxes, laptop computers, batteries, wireless accessories and GPS products.

This figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

RadioShack reported stronger sales for its Sprint Nextel postpaid wireless business, netbooks and prepaid wireless handsets and airtime. The addition of T-Mobile as a postpaid wireless carrier also contributed to revenue.

RadioShack has about 4,470 company-run stores; nearly 1,300 dealer outlets; more than 450 U.S. wireless phone kiosks and approximately 200 company-run stores in Mexico.