RadioShack 2Q income down, sales up

FORT WORTH, Texas RadioShack reported a decrease in its second quarter net income to $41.4 million, or 32 cents per diluted share, from $47 million, or 34 cents per diluted share in the prior year. According to the company, second quarter 2007 net income was favorably impacted by a $10 million reversal of an income tax contingency reserve. Second quarter 2008 net income was negatively impacted by $4.3 million related to the one-time charge of the previously announced amendment to its corporate headquarter lease partially offset by the favorable impact of a state sales tax settlement.

The company reported that second quarter comparable sales increased 6.9% and reported operating income increased 10%. The increase in comparable sales was driven by strong initial sales of digital-to-analog TV converter boxes, continued strong performance in GPS devices, increased sales in video gaming, prepaid wireless phones and significant improvement in AT&T post-paid business, the company reported.

Total sales in the second quarter of 2008 were up $60 million to $995 million versus total sales of $935 million for the same period last year.

"The economic environment continues to be challenging, however, as a credit to our team, we are pleased with our progress as we begin to drive profitable growth," said Julian Day, chairman and ceo. "We continue our focus on opportunities to offer our customers solutions to their needs. Our improved sales this quarter reflect our success in improving our merchandising, store operations and overall customer experience."