RadioShack Q4 Sales, Comps Flat, Earnings Up
By Jeff Malester -- TWICE, 2/19/2004
Fort Worth, Texas — Although RadioShack posted flat sales and comps for its fourth quarter, the retailer reported favorable earnings, due to increased diligence in its 'organizational disciplines,' such as 'buying, pricing, staffing and other areas driving higher profit.'
RadioShack sales for the three months, ended Dec. 31, edged downward, to $1.49 billion, from $1.50 billion in the same period in 2002. Net income in the fourth quarter increased to $127.3 million, up from $109.1 million in the same three months a year earlier, while operating income for the period climbed to $207 million, compared with $180.6 million year-on-year.
Comp-store sales for the year’s last quarter were flat, compared with the prior year period.
'Improved management of product mix, supply chain initiatives, markdowns, along with other factors related to gross margin, favorably impacted our quarterly earnings beyond our expectations,' said Len Roberts, RadioShack chairman/CEO.
Sales for the full year increased 2 percent, to $4.65 billion, compared with the $4.58 billion registered in 2002.
Full year net income was $298.5 million, up x the $263.4 million recorded in the same period a year earlier, while operating income for the 12 months jumped to $483.7 million, up from $425.4 million year-over-year.
In other 12-month statistics, inventory turnover was 2.7 times vs. 2.5 times a year earlier. Free cash flow reached $421.4 million for the year, compared with $375 million the previous 12 months.
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