RadioShack Q2 Income Declines 23.4%
Fort Worth, Texas, Weakness in wireless pushed down profits at RadioShack Corp. The 7,000-store chain posted net income of $52.3 million for the quarter ended June 30, down 23.4% from net income of $68.3 million in the previous year’s quarter. Total sales in the second quarter of 2005 were up 4% to $1.09 billion, compared to total sales of $1.05 billion for the previous year. Second-quarter 2005 comparable-store sales were down 1% vs. the prior year.
“Our profit decline in the second quarter was driven by lower comp-store sales and more specifically by weakness in our core store wireless business,” said David Edmondson, president and CEO. “Nevertheless, non-wireless product lines and key initiatives, such as our store standard operating procedures and new store format, are performing well and this gives us confidence in the future.”
Total wireless sales were up 2% due to growth in RadioShack’s kiosk channel offset by a decline in sales of wireless in its company stores. Most of the company’s seven merchandise platforms realized both a sales and gross profit dollar increase for the second quarter. Selling, general and administrative expenses were up, as planned, 7% due primarily to new growth channels such as kiosks.
Hundreds of Walgreens Pharmacists Return to Work
Deerfield, Ill., Hundreds of striking Walgreens pharmacists have returned to work in Chicago-area stores. The actual number of pharmacists that have returned to work varies between reports from Walgreens and the National Pharmacists Association union. According to Walgreens, 409 pharmacists or about 36% have returned to work. The union, however, reports 300 pharmacists or about 25% have returned.
The strike, organized by the union, has entered its second week and was called to address staffing shortages and working conditions. Walgreens reported the return of pharmacists has allowed 64 pharmacies to return to their normal hours, including 25 pharmacies that are open 24 hours.
Kohl’s Effects Turnaround With New Brands
Menomonee Falls, Wis., Ayear-long climb on Wall Street, which culminated in a 14.4 % jump in June sales, is due, say analysts, to a host of new clothing lines that have helped drive store traffic and boost sales at Kohl’s.
After 2003-2004 struggles with stagnant fashion sales and excess inventories, Kohl’s made a big investment in brands and rolled out an exclusive string of new apparel names that were more fashion-forward and more popular with shoppers.
Next up for Kohl’s is an expansion of the jewelry and home offerings, as well as a deal to sell clothing under the skateboarder Tony Hawk’s Quicksilver brand and Candie’s brand.