RadioShack said it will get $141 million by Friday...
RadioShack said it will get $141 million by Friday from a wireless carrier to settle an upfront-commission dispute. The companies are negotiating contract changes involving upfront commissions and chargeback provisions. But the unspecified wireless provider won’t have to pay a…
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residual for customers activated June 30 or earlier. Such payments averaged $9 million per quarter in the first half, RadioShack said. The retailer sells AT&T, Sprint Nextel and T-Mobile wireless services. T-Mobile is a recent addition, but RadioShack has been selling Sprint service for 14 years. RadioShack also sells wireless services through BullsEye Mobile Solutions kiosks at Target. After completing a test at 104 Target stores, the program will add 750 outlets mid-August to October, analysts said. The kiosks will be in 1,500-1,600 Target stores by mid-2011, analysts said. The first ones opened in October 2009. RadioShack operated 533 kiosks outside Targets on June 30, down from 555 in March and 617 a year earlier, the company said. RadioShack said it took over Sprint-branded kiosks a year ago and runs 96 under its own banner in shopping malls as an extension of its stores. Most of the kiosks outside Targets are in Sam’s Club, which assumed responsibility for 22 in Q2, RadioShack said. Sam’s Club has the rights to operate an additional 23 locations, RadioShack said. RadioShack’s Q2 kiosk-related revenue declined to $55.5 million from $63.4 million. The number of company-owned RadioShack stores rose to 4,469 from 4,450 a year earlier but dropped from 4,475 in March. There were 1,267 franchised locations June 30, down from 1,301 in March and 1,372 a year earlier. RadioShack said it closed “lower volume” franchised stores in Q2. In Mexico, RadioShack had 203 locations, up from 201 a year earlier. RadioShack had a $53 million Q2 profit, up from $48 million. Sales rose to $1.01 billion from $965.7 million on a 6.7 percent gain in same-store sales. Sales at RadioShack-owned stores rose to $873.9 million from $821.4 million a year earlier. Wireless sales increased 64 percent, and sales of personal electronics and accessories decreased 19.8 percent and 25.4 percent. RadioShack services revenue, including AT&T ConnecTech’s, jumped 6.6 percent, the company said. Gross profit improved to 47.5 percent from 46.1 percent.