RadioShack Comps Climb 14 Percent

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Fort Worth, Texas -- Flying in the face of a generally soft retail environment, RadioShack posted a 14 percent spike in same-store sales last month, while total sales soared 17 percent to $379.5 million on top of last year's 10 percent gain.

The August tally, which includes sales at company-owned and dealer/franchise stores, represents the chain's third consecutive double-digit month.

Chairman, president and CEO Len Roberts credited sales of back-to-school computers, A/V gear and wireless communication products for the hefty sales spurt, as well as RadioShack's repositioning as a destination for digital devices. "Clearly, RadioShack is differentiating itself as a pure play in today's hot digital product cycle," he said. "Our business is squarely focused on the latest digital electronic products, further distancing us from the vulnerability of economic cycles facing many retailers today."

According to PaineWebber retail analyst Aram Rubinson, the company's comp store gain exceeded expectations of 10 percent, and RadioShack has raised its general guidance for September comps from about 7 percent to double digits. "The company is hitting its stride," he noted in a client brief.

Year to date, total sales are up 14 percent to $2.7 billion while same-store sales climbed 11 percent.

Looking ahead, RadioShack will begin to roll out its Microsoft ISP centers later this month, which Roberts said will provide a "seamless one-stop shopping retail experience, making sign up and in-home installation easy and convenient."


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