RadioShack's Q4 Sales Increase 7%; Edmondson To Succeed Roberts As CEO
By Alan Wolf On Jan 17 2005 - 7:00am
Sales of digital imaging, home networking and wireless communications products and services helped RadioShack's fourth-quarter revenue rise 7 percent to $1.6 billion, while comparable store sales climbed 3 percent year-over-year for the three months ended Dec. 31, 2004.
Separately, RadioShack announced that chairman Len Roberts will hand off his CEO title to president/chief operating officer Dave Edmondson in May.
Leading the fourth-quarter sales cavalcade was the computer category, up 27 percent thanks to sales of digital imaging, home networking and surveillance products. Second place went to wireless communications, which rose 13 percent on the strength of subscription and handset sales from Verizon and Sprint; pre-paid products and services from Virgin Mobile; and the October acquisition of over 500 wireless Sam's Club kiosks carrying Sprint, T-Mobile and Cingular.
RadioShack saw its largest volume declines in home entertainment, which fell 16 percent on lower sales of A/V and accessories, and wired communications, where slower sales of telephones and accessories dragged the category down 15 percent.
Roberts said sales were respectable across the board by both product sector and channel, including company and franchised stores, the Sam's Club kiosks and a recent rollout of Sprint kiosks in major shopping malls.
Sales for the full year rose 4 percent to $4.8 billion, and same-store sales edged up 3 percent.
RadioShack described Edmondson's ascension as a planned succession. As executive chairman, Roberts, 55, will continue to help guide the company on long-term strategic opportunities; represent it before key industry, civic and philanthropic constituents; and provide leadership to the board of directors. Edmondson, 45, who joined RadioShack in 1994 as VP/marketing and was named president/chief operating officer in 2000, will assume day-to-day management of the company.
“I've never wanted to be an entrenched CEO,” said Roberts, who has held that post with three different companies for the past 20 years. “This is an excellent time to transition.”