After struggling financially for several years, RadioShack appears to be in the midst of a comeback. The CE retailer reported Tuesday that its fourth quarter profit rose 65 percent- with even bigger gains expected this year.
The gain was attributed largely to cost cutting, as RadioShack has recently closed stores and laid off headquarters employees; despite the profits, revenue and sales were down. In addition to the lower costs, company executives also attributed the gains to improved inventory management, as well as store markdowns.
RadioShack chairman and chief executive Julian Day, a toned turnaround specialist who was brought into the company in July, said that the company has made much progress in some areas, while others, especially the wireless business, remain more of a challenge.