RadioShack profit up 11% in Q1

Fort Worth, Texas RadioShack reported strong first-quarter earnings on Thursday, as net income rose 11% to $ 43.1 million, vs. $38.8 million for the year-ago period. The chain’s performance was bolstered by strong sales of its digital converter boxes, postpaid wireless and flat-panel televisions.

Net sales for the quarter, ended March 31, were up 5.6% to $1 billon, compared with $949.0 million a year ago. Same-store sales increased 5.0%. It was the company’s strongest first-quarter performance since 2004, according to Julian Day, the company’s chairman and CEO.

RadioShack continued to get a sales boost from shoppers buying digital converter boxes ahead of the federally mandated conversion to all-digital television signals this year. The retailer sold more than 1 million converter boxes in the quarter, totaling about $70 million in sales.

However, some experts say the sales boost from the all-digital switch will begin to evaporate once all households that need the converter boxes have them, and RadioShack will need to focus more on cell phone sales. To that end, the retailer said its wireless business also improved during the quarter.

The retailer, which has about 4,400 company-operated stores, almost 1,400 dealer outlets and nearly 700 wireless phone kiosks throughout the United States, has closed unprofitable stores and cut staff in recent years to turn around its business.