RadioShack said that ongoing cost reductions and improved inventory management allowed the company to post $46.3 million in net income during the third quarter despite sagging sales. The company reported a net loss of $16.3 million during the year-ago period. Net sales, however, slipped 9.4% to $960.3 million during the three months, ended Sept. 30, while same-store sales declined 8.6% year-over-year.
RadioShack said it trimmed expenses by cutting staff, reducing legal and consulting fees, and by modifying its vacation accrual policy. The company operated 6,703 retail locations in total at the end of the quarter.
The company said that its wireless division decreased 14.1%, primarily driven by a decline in postpaid wireless sales for its two main wireless carriers. Accessories decreased 4.3%, primarily as a result of declines in wireless and home entertainment accessory sales, but partially offset by increases in media storage and headphones sales. Modern home (including residential telephones, A/V, satellite systems and computers) increased 1.3% as a result of increased sales of flat-panel televisions, laptop computers, PC peripherals, and flash drives, offset by sales declines in residential telephones, audio, and surveillance products. Personal electronics decreased 12.2%, driven primarily by sales declines in satellite radios and digital music players, but partially offset by increased sales of digital cameras and robot and hobby-grade remote control devices.