RadioShack profit drops 25% in Q4
Fort Worth, Texas — RadioShack Corp. on Tuesday said its fourth-quarter net income fell by 25%, which was toward the low end of the company’s already reduced guidance.
The company reported net income of $57 million in the October to December period, down from $75.7 million a year ago.
Revenue rose nearly 4% to $1.37 billion from $1.32 billion last year, matching analyst expectations and the company’s forecast. Same-store sales rose 1.3%, driven primarily by higher postpaid wireless sales, particularly sales of smart phones. Higher sales of prepaid wireless handsets, laptops and wireless accessories also contributed to the increase.
RadioShack said it expects operating income from its kiosks segment will decline by about $10 million to $15 million in 2011, reflecting the impact of ramping up its new kiosks in Target stores and discontinuing its ones in Sam’s Club stores. Growth is expected to resume in 2012.
RadioShack had warned in January that poor sales of T-Mobile USA phones and a shift towards cheaper phones hurt its fourth-quarter performance. RadioShack said it has informed T-Mobile that the company considers it to have "materially breached" its contract.
Dillard’s Q4 profit up 38% on improved sales
Little Rock, Ark. — Dillard’s said Tuesday that its net income grew 38% in the fourth quarter as its sales improved and the retailer controlled expenses and inventory.
Dillard’s earnings rose to $109.6 million in the three months ended Jan. 29, compared with $79.5 million one year earlier.
Sales rose 5% to $1.93 billion from $1.83 billion, with merchandise sales up 6% to $1.91 billion. The rest of its revenue comes from its CDI Contractors construction business. Same-store sales rose 7%.
The company said its annual profit more than doubled to $179.6 million. Net sales edged up to $6.12 billion from $6.1 billion.
Dillard’s closed two stores during the quarter, and plans to close a location in Decatur, Ala., later this year. At the end of the fiscal fourth quarter it operated 294 stores and 14 clearance centers in 29 states.
Best Buy to open 150 mobile stores in fiscal 2012
Minneapolis — Best Buy said in fiscal 2012 it will concentrate on growing its smaller-format mobile chain and restructure parts of its supply chain processes to cut costs and improve efficiency. The retailer plans to open about 150 Best Buy Mobile stand-alone-stores in the United States, for a total of some 325 locations by year-end.
Best Buy plans to open about six to eight Best Buy-branded large-format stores in the United States, along with 18 Best Buy stores in Canada, the United Kingdom and Mexico during the year.
In China, Best Buy will focus on its Five Star branded stores and open 40 to 50 locations in growing markets. These openings would take the total Five Star stores to about 210 by year-end. Best Buy also announced it would exit Turkey, where it has two stores.
"Five Star has been a profitable business model in the large and fast-growing consumer electronics market in China. The company believes that Five Star provides Best Buy with an excellent strategic growth option in the important China marketplace," the company said.
Best Buy expects to incur restructuring charges during fiscal 2011 and 2012 of $225 million to $245 million. The bulk of the charges will be reported in the fourth quarter of fiscal 2011, with the balance of the charges reported in 2012, the company said. Best Buy expects the changes to save it $60 million to $70 million per year once they’re completed in fiscal 2013.