RadioShack Q3 profit falls, misses Street
Fort Worth, Texas — RadioShack Corp. reported Tuesday that profit for the quarter ended Sept. 30 plummeted to $300,000, compared with earnings of $46 million in the year-ago period. The retailer cited the transition from T-Mobile offerings to Verizon Wireless as a major reason for the performance decline, although that was offset somewhat by new mobile service and sales centers in Target stores. The company launched Verizon Wireless in more than 4,400 stores on Sept. 15, as well as ramped up its Target Mobile centers rollout in the same period.
RadioShack’s total revenue rose 3% to $1.03 billion, matching Wall Street expectations. Same-store sales, including Target Mobile centers, dipped 4% during the quarter.
“Despite the pervasive challenges in the retail economy, we believe we are well positioned to advance our mobility growth strategy in the quarters ahead," said Jim Gooch, RadioShack president and CEO.
In related news, RadioShack announced earlier on Tuesday that it would double its annual dividend payment to $.50 cents per share, and that it will repurchase up $200 million of its common stock over the next 12 months.
Toys”R”Us expands into Poland
WAYNE, N.J. — Toys“R”Us announced that it has established business operations in Poland and plans to open its first store in the country at the end of November. The first Toys“R”Us store in Poland will open in the country’s capital city of Warsaw just in time for the holiday shopping season, with several additional locations slated to open in major cities throughout the country in 2012, the company reported.
“As part of our long-term growth strategy, we continue to look for opportunities to expand our footprint internationally and to identify new and emerging markets that would benefit from the distinctive products and services that Toys“R”Us offers,” said Jerry Storch, chairman and CEO of Toys“R”Us Inc. “Toys“R”Us is one of the most iconic brands in the world and has always translated well to customers abroad. By leveraging our global position, we believe we can help grow the toy and juvenile market in Poland, while broadening our reach with both consumers and manufacturers across Europe.”
Measuring 25,000 sq. ft. in size, the Toys“R”Us store in Warsaw will feature a small Babies“R”Us section within the same location. This is consistent with the company’s integrated store strategy across the globe.
With plans to open several additional Toys“R”Us stores in major cities throughout the country in 2012, Toys“R”Us Inc. intends to expand its operations in Poland, the company said.
By establishing a presence in Poland, Toys“R”Us, Inc. now operates approximately 1,600 stores in 36 countries.
Vitamin Shoppe Q3 sales and profit up; on track to open 48 stores
North Bergen, N.J. — Vitamin Shoppe reported Wednesday that net income for the quarter ended Sept. 24 rose to $11.9 million, compared with $7.2 million for the same period last year.
Sales increased 11.5% to $208.9 million, from $187.4 million last year. Same-store sales rose 7.1%. The company opened 10 stores during the quarter, and expects to open 48 new stores in this fiscal year and another 52 locations in fiscal 2012.