RadioShack reported strong first-quarter earnings and revenue on the back of better sales from its wireless business, which continues to drive growth at the retailer.
The company said net income rose to $50.1 million in the quarter, up 16 percent from $43.1 million in the year-ago period. Total net sales rose 4 percent to $1.04 billion from $1 billion in the year-ago quarter.
RadioShack stock was up slightly on the news to around $23 per share.
However, it was wireless sales that helped the company surge ahead; wireless grew 49 percent in the quarter. RadioShack said the increase was driven by stronger postpaid wireless sales through Sprint Nextel (NYSE: S), as well as the introduction of T-Mobile USA in its company-owned stores and higher prepaid handset and airtime sales. T-Mobile and RadioShack inked a retail deal last summer.
Despite the stronger results, the company--which rebranded itself last year as "The Shack"--is being buffeted in the mobile retail space by Best Buy. Best Buy CEO Brian Dunn told the Financial Times earlier this month that the company will open another 75 to 100 Best Buy Mobile stores this year on top of the 77 outlets it already has, and will eventually have "a number somewhere between here and 1,000."
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