RadioShack (RSH) swung to a small profit in the last quarter, helps by reversal in an income tax charge. Net income moved to $47 million from a lose of $3 million in the same quarter a year ago.
But, the company is slowly disappearing. Revenue declined 15% to $935 million. Same-store sales were down almost 9%. The company said: The post-paid wireless business continued to negatively impact both the comparable store and total sales results
It must be that consumers are buying their cellphones somewhere else.
RadioShack’s CEO was quoted as saying "Our improved gross margin rate this quarter reflects some success in increasing the role of the ‘value-added’ products in our mix."
But, he neglected to say that gross margins won’t mean much if the company keeps shrinking this fast.
Douglas A. McIntyre
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