RadioShack Slapped With Securities Suit
Bala Cynwyd, Pa., Law firm Brodsky & Smith announced Tuesday that a securities class-action lawsuit has been filed against RadioShack Corp. on behalf of shareholders who purchased the company’s stock between Jan. 13, 2003, and June 7, 2006.
The suit, filed in the U.S. District Court for the Northern District of Texas, alleges that RadioShack violated federal securities laws by issuing a series of material misrepresentations to the market, thereby artificially inflating the price of RadioShack.
Wal-Mart Partners with Nickelodeon
Bentonville, Ark., Wal-Mart Stores and Nickelodeon announced a first-time advertising, promotions and merchandising partnership surrounding Nickelodeon’s 20th Annual Kids’ Choice Awards airing March 31.
Wal-Mart has signed on to become the first and exclusive retail sponsor for Nickelodeon’s annual television event that celebrates top entertainment picks, as chosen by kids. It is one of the network’s highest-rated events of the year.
The agreement between Wal-Mart and Nickelodeon will be divided among several Nickelodeon platforms including Nickelodeon television, Nickelodeon Magazine and Nick online.
Gymboree 4Q Profit Rises 20%
San Francisco, Gymboree Corp. said Tuesday its fiscal fourth-quarter profit rose 20% on a jump in revenue. For the quarter ended Feb. 3, Gymboree earned $24.4 million compared with $20.4 million for the same quarter in 2005.
Earnings from continuing operations rose to $26.8 million from $21.2 million in the 2005 period. Revenue rose 18% to $241 million from $203.7 million in the year-ago period. Comp-store sales rose 7% from the fourth quarter of last year.
For the full year, Gymboree earned $60.3 million compared with $33.7 million in 2005. Revenue rose to $791.6 million from $667.5 million the year before.