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RadioShack Q3 Sales Decrease 5%

10/23/2001 11:53:00 AM Eastern

Fort Worth, Texas - Claiming weak sales in a difficult selling environment, RadioShack posted sales of $1.08 billion in the third quarter, a dip of 5 percent from the $1.14 billion recorded in the year-ago period. Comp-store sales for the three months decreased 4 percent.

Net income for the third quarter ended Sept. 30 was $43.8 million, including a charge for job cuts, down 43 percent from the $77.1 million recorded in the same three months in 2000. Excluding the charge related to the reduction in the retailer's labor force, earnings in the third quarter were $52.1 million, down 32 percent from the $77.1 million reported in the third quarter last year.

'Though the sales environment was difficult, our gross margins are heading in the right direction, and [selling, general and administrative] SG&A expenses are flat,' said Leonard Roberts, chairman/CEO. 'We view these trends as positive as we enter the fourth quarter.'

For the nine months, RadioShack sales rose 2 percent to $3.26 billion, up from $3.21 billion registered in the year-ago period.

Adjusted earnings for the nine months fell 25 percent to $166.1 million, excluding losses related to a reduction in the workforce, an Internet-related investment and the sale of Computer City, compared with $221.6 million in the same nine months last year. Including charges, net income was $131.5 million for the nine months, compared with $222.2 million in the year-ago period.