But the company says that even though results are improving in its Sprint post-paid business, that line is still a major drag on results. Excluding Sprint postpaid and related wireless accessory business, "comparable store sales in the second quarter would have increased 12.7%," the company says.
Still, the Fort Worth, Texas-based electronics retailer says it saw a "significant improvement" in its AT&T post-paid business.
Total sales rose to $995 million, $935 million for the same period last year. Online sales jumped 29.8%.
Operating income gained 10%, while its net income fell to $41.4 million, from $47 million in the same period a year ago. (Income was affected by a $4.3 million adjustment to the lease for its corporate headquarters.)
"The economic environment continues to be challenging," the company says, "however, as a credit to our team, we are pleased with our progress as we begin to drive profitable growth."
Experts say the sale of converter boxes are expected to be a boon for electronics retailers in the months ahead. The transition to digital-only for full-power television broadcast signals in the U.S. is scheduled to take place in the first quarter 2009. After that, older TVs-a market that industry estimates put at 25 million to 30 million households--won't work without a converter box, which range from $40 to $70 each.
But while the government has established a program to provide two free $40 coupons per household, many consumers are still unaware of the change.