RadioShack Corp. (Fort Worth, Texas) has announced that its fourth quarter 2002 earnings per share will not meet its previously stated forecast of 63 to 68 cents. Rather, the company expects an earnings level of between 58 and 60 cents a share.
“Though year-over-year sales changes improved every month during the quarter,” said chairman and ceo Leonard Roberts, “sales were consistently a little lower than our plan throughout the three-month period. In addition, gross margin trends, beginning in November, aggravated the earnings picture.”
The company identified, among the more significant drivers of RadioShack's earnings shortfall, were weaker-than-expected sales and gross margin of Sprint PCS products and service beginning in November; sales of (non-micro) radio controlled toys; sales of specialty batteries tied to radio controlled toys; and sales of select home-entertainment accessories tied to DVD players.
The electronics retailer said it still remains bullish about the next three years, based on an expected sales growth of 2 to 3 percent.