The Shack is Back, 'Geeky' Electronics Retailer Beats Estimates

The Shack is back.

Radio Shack (RSH) shares are up sharply Tuesday on signs of success in the geeky electronics retailer’s financial performance. For the fourth quarter, the company reported revenue of $1.364 billion and EPS of 77 cents, beating the Street at $1.33 billion and 72 cents. The company noted that it had “improved gross margin, a reduction in SG&A and reduced interest expense” versus a year ago. Comparable store sales were down 6.7% in the quarter, largely due to lower sales of Sprint (S) mobile phones and weakness in satellite radio.

The company said on the company’s post-earnings conference call that if you take out the troubles with Sprint, and lower flat-screen TV revenues as it pared back its offerings in both assortment and the number of stores which sell them, sales would have been flat for the quarter. On the other hand, the retailer said it saw “strong triple digit growth” in the GPS category. And it is also seeing good results from an expansion in video gaming, where it plans to increase its assortment in all stores.

CFO Jim Gooch said on the call that the company had a soft January, but that he is “fairly happy” with February. If you exclude their business with Sprint and the related accessory business for the month, he said, “the remaining categories are trading positive in low single digits.”

Gooch also noted in response to a question that the company has no current plans for a share buyback, but he did note that cash on the balance sheet is increasing, providing “greater flexibility.”

Radio Shack Tuesday is up $3.34, or 21.2%, at $19.08.