Consumer electronics retailer RadioShack Corporation (Fort Worth, Texas, U.S.) announced net income of U.S. $42.5 million or $0.31 per diluted share for the quarter ended March 31, 2007 versus net income of $8.4 million or $0.06 per diluted share for the quarter ended March 31, 2006. First quarter net income was favorably impacted by improved gross margin; a reduction in selling, general and administrative (SG&A) expenses; and an increase in interest income when compared to the prior year period.
First quarter 2007 comparable store sales were down 9.2 percent versus the prior year. Total sales decreased in the first quarter of 2007 to $992 million, down 14.5 percent, from total sales of $1.160 billion for the previous year. The declines in the postpaid wireless business continue to impact both the comparable store and total sales results. In addition, total sales were impacted by 506 fewer company-operated stores and kiosks when compared to last year.
"We took the opportunity earlier this year to warn that same store sales numbers for the first quarter were likely to be challenging, given the highly promotional nature of our business in the first quarter last year," said Julian C. Day, chairman and CEO. "And so it proved. Nonetheless, against this background we were able to produce financial results which reflected steady improvement in our operating economics."
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