NEW YORK – Consumer electronics retailer RadioShack Corp. (RSH) Thursday said fourth-quarter sales at stores open at least a year rose 4 percent, but 2005 earnings would miss its goal.
The company warned last month that it probably would fall short of its 2005 earnings forecast of $2.14 to $2.24 per share as sales of wireless products and high-margin items such as batteries and accessories were weaker than expected.
"Wireless was negatively impacted in our core stores due to our carrier transition from Verizon Wireless," Chief Executive David Edmondson said in a statement Thursday.
RadioShack, trying to revive its wireless sales, has switched its vendor. It agreed last year to sell Cingular Wireless phones and cut ties with long-time ally Verizon (VZ) Wireless. It also signed a new 11-year deal with Sprint .
The Fort Worth, Texas-based retailer said that in the fourth quarter, wireless sales were up 6 percent after higher sales at its kiosks offset "significantly" lower sales of Verizon Wireless. In terms of units, it said wireless sales were higher overall but lower in the core RadioShack stores.
The company said total sales in the quarter rose 5 percent to $1.67 billion from $1.59 billion a year earlier.