RadioShack reported respectable fourth quarter and annual profits, despite sales that declined for both periods.
Len Roberts, RadioShack chairman and CEO, announced last week that the company enjoyed a fourth quarter profit of $109.1 million on sales of $1.5 billion, for the period that ended Dec. 31, 2002. This was a marked improvement over the $35.2 million posted during the same period last year.
However, sales for 2002 were down $18.1 million.
For the year, the national CE chain had a net income of $263.4 million on sales of $4.6 billion, up dramatically from the $166.7 million earned in 2001. Sales for 2002 were down $198.5 million from 2001.
Comparable store sales for the fourth quarter were up 2 percent, but fell 1 percent for the year.
“RadioShack’s fourth quarter earnings are the result of respectable same store sales in a challenging retail environment,” Roberts said.
The company also generated $375 million of free cash flow for the year, exceeding its guidance.
Looking ahead to 2003, Roberts said he is comfortable with the 2 percent to 3 percent sales growth now anticipated for the year and he estimated that first quarter earnings per diluted share will be in the $0.33 range.