RadioShack profit plummets 79%
Fort Worth, Texas — RadioShack Corp. reported a steep decline in fourth quarter profit this morning. Its results, however, were in line with its January warning to investors.
The chain posted a profit of $11.9 million, compared to a profit of $57 million in the prior year. Total fourth-quarter sales rose 5.9% to $1.39 billion. Same-store sales fell 1.4%.
Mild winter contributes to strong quarter for Home Depot
Atlanta — The Home Depot Inc.’s fiscal fourth-quarter earnings rose 32% to $774 million, compared with a profit of $587 million in the year-ago period. The retailer noted that mild weather throughout parts of the United States gave homeowners the chance to work on homes projects in the winter.
Sales rose 5.9% to $16.01 billion, topping the Street’s view of $15.51 billion. Same-store sales grew 5.7% overall, and 6.1% in the United States. The chain said it generated a 3.6% rise in fourth-quarter customer transactions and the average ticket increased 2.4% to $52.54.
We had a strong finish to 2011, and with favorable weather, our business delivered results that exceeded our expectations," CEO Frank Blake said in a statement.
Barnes & Noble income down amid higher costs; same-store sales up
New York City — Barnes & Noble reported that its net income for the 13 weeks ended Jan. 28 fell 14% to $52 million, compared with $60.6 million as rising costs offset higher sales for both physical and digital books. The company also said it will introduce a cheaper Nook Tablet, with eight gigabytes of memory for $199. (Its current device sells for $249.)
Revenue rose 5% to $2.44 billion. Revenue from Nook e-readers and its digital catalog rose 38% to $542 million. The company estimates it now has a 27% to 30% share of the U.S. e-book market.
Traditional book sales were up 4% in the quarter. Same-store sales increased 2.8%.
"In the third quarter, our traffic and sales in stores were the highest we’ve seen in five years," said Barnes & Noble CEO William Lynch said in a call with investors. "Our juvenile business and our toys and games department both drove significant double-digit increases, due in large part to the execution of our new merchandising strategies."