8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2008

Commission file number 1-5571

RADIOSHACK CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	75-1047710
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)
300 RadioShack Circle, Mail Stop CF3-203,
Fort Worth, Texas	76102
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (817) 415-3011

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

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Item 2.02. Results of Operations and Financial Conditions.

On July 24, 2008, RadioShack Corporation (the “Company”) issued a press release containing certain information with respect to its second quarter 2008 financial results. A copy of the press release is attached as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.

99.1 Press Release, dated July 24, 2008.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		RadioShack Corporation
		(Registrant)
Date:  July 24, 2008	/s/	James F. Gooch
		James F. Gooch
		Executive Vice President -
		Chief Financial Officer
		(Principal Financial Officer)

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EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release, dated July 24, 2008

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EX-99.1

                                                                                          &# 160;        PRESS RELEASE

               RSH-2008-016

FOR IMMEDIATE RELEASE RSH-2008-016

For further information contact:

Martin O. Moad

Vice President and Controller

(817) 415-2383

investor.relations@radioshack.com

RadioShack Corporation Announces Increased Sales and Operating

Income for the Second Quarter 2008

New $200 million share repurchase program authorized

Fort Worth, Texas, July 24, 2008 – RadioShack Corporation (NYSE: RSH) today announced second quarter 2008 comparable sales increased 6.9% and reported operating income increased 10%.

Net Income

Second quarter 2008 net income was $41.4 million, or $0.32 per diluted share compared to $47.0 million, or $0.34 per diluted share in the prior year.  Second quarter 2007 net income was favorably impacted by a $10.0 million reversal of an income tax contingency reserve.  Second quarter 2008 net income was negatively impacted by $4.3 million related to the one-time charge of the previously announced amendment to its corporate headquarter lease partially offset by the favorable impact of a state sales tax settlement.  After adjusting for these items, proforma earnings per share1 increased from $0.27 in second quarter 2007 to $0.35 in the comparable 2008 period.

Revenue

Second quarter 2008 comparable store sales increased 6.9% versus the second quarter of 2007. The increase in comparable sales was driven by strong initial sales of digital-to-analog TV converter boxes, continued strong performance in GPS devices, increased sales in video gaming, prepaid wireless phones and significant improvement in AT&T post-paid business. The sales of the converter boxes are a result of the transition of full-power television broadcast signals in the United States to digital only, which is currently scheduled to take place in the first quarter 2009. The positive trends in these categories were partially offset by poor performance in the Sprint post-paid business.   Despite an improvement in Sprint’s post-paid business versus prior quarters, it continues to be a significant negative impact to the company’s performance.  But for the Sprint post-paid and related wireless accessory business, comparable store sales in the second quarter would have increased 12.7%.

Total sales in the second quarter of 2008 were up $60 million to $995 million versus total sales of $935 million for the same period last year. The overall sales increase was driven by increases in company owned stores of 7.5%, sales to dealer/franchise outlets of 6.1% and our on-line business which increased 29.8%.  The increases in these channels were partially offset by a 2.7% decrease in our kiosk business.  The decrease in kiosk sales is attributable to significant decreases in our Sprint kiosk business, partially offset by increases in our Sam’s Club kiosks.

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1 See reconciliation of proforma earnings per share (“EPS”) to earnings per share at the end of this release.

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“The economic environment continues to be challenging, however, as a credit to our team, we are pleased with our progress as we begin to drive profitable growth,” said Julian Day, Chairman and Chief Executive Officer.  “We continue our focus on opportunities to offer our customers solutions to their needs.  Our improved sales this quarter reflect our success in improving our merchandising, store operations and overall customer experience."

Operating Income

Second quarter 2008 operating income increased 10% to $71.3 million from $64.9 million in the prior year.  After adjusting for the one-time and unusual items related to the headquarters lease amendment and state sales tax settlement, proforma operating income2 for second quarter 2008 was $78.3 million compared to $64.9 million in the prior year, or a 21% improvement.  Operating income increased due to the comparable store sales increase, partially offset by a 110 basis point reduction in gross margin rate and slightly higher SG&A costs. The gross margin rate was impacted by negative mix associated with greater promotional activity, the strong sales results of TV converter boxes and a shift in wireless towards a higher mix of upgrade versus new subscriber business.

Selling, general and administration expenses increased $15 million to $375 million compared to $360 million for the same period last year.  The majority of the increase was due to the one-time, non-cash charge related to the headquarters lease combined with a greater investment in store payroll, with a goal of improving overall customer experience and driving profitable same store sales.

“We are seeing the benefits of our work last year to establish the company financial model allowing additional volume to translate directly into increased earnings for the company. After successfully right-sizing the cost structure, we have increased our focus on top line sales with the goal of improving gross profit dollars.  We will continue to work to improve the mix of sales and gross margin rate in order to maximize our overall profitability," stated Jim Gooch, Executive Vice President and Chief Financial Officer.

Corporate Campus Lease Amendment

As the company announced late last month, RadioShack amended its corporate headquarters lease. Despite the one-time non-cash pre-tax charge of $12.1 million ($7.4 million after-tax), the company anticipates this transaction will save approximately $300 million in rent and occupancy over the remaining length of the original lease.

Cash Position

RadioShack’s cash balance at the end of the second quarter of 2008 was $578 million which was a decrease of $52 million versus June 30, 2007.  The decrease in cash is a result of the company retiring a total of $317 million in debt and equity during the past twelve months.  The net $265 million improvement in cash flow was driven by improved operating performance, more efficient capital spending and a continued focus on balance sheet management.

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2 See reconciliation of proforma operating income to operating income at the end of this release.

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Share Repurchase Program

RadioShack announced today that its board of directors has approved a new $200 million share repurchase program.  The new authorization does not have an expiration date and purchases under the authorization are anticipated to be made from time to time.

RadioShack announced that it has filed with the SEC its Form 10-Q for the quarter ended June 30, 2008.

Forward-Looking Statements

This press release contains or may contain forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 (“the Act”).  These forward-looking statements reflect management’s current views and projections regarding economic conditions, retail industry environments and company performance.  Factors that could significantly change results include, but are not limited to, sales performance, economic conditions, product demand, expense levels, competitive activity, interest rates, changes in the company’s financial condition, availability of products, the regulatory environment and factors affecting the retail category in general.  Additional information regarding these and other factors is described in the company’s filings with the SEC, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q.

About RadioShack Corporation

RadioShack Corporation (NYSE: RSH) is one of the nation’s most experienced and trusted consumer electronics specialty retailers.  Operating from convenient and comfortable neighborhood and mall locations, RadioShack stores deliver personalized product and service solutions within a few short minutes of where most Americans either live or work.  The company has a presence throughalmost 6,000 company-operated stores and dealer outlets in the United States and over 700 wireless phone kiosks. RadioShack’s dedicated force of knowledgeable and helpful sales associates has been consistently recognized by several independent groups as providing the best customer service in the consumer electronics and wireless industries.  For more information on RadioShack Corporation, or to purchase items online, visit www.radioshack.com.

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RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)
(In millions, except per share amounts)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Net sales and operating revenues	$	994.9		$	934.8		$	1,943.9		$	1,927.1
Cost of products sold		525.5			483.2			1,024.9			980.2
Gross profit		469.4			451.6			919.0			946.9
Operating expenses:
Selling, general and administrative		375.4			359.8			737.8			753.4
Depreciation and amortization		22.1			26.4			44.5			52.9
Impairment of long-lived assets		0.6			0.5			1.2			1.1
Total operating expenses		398.1			386.7			783.5			807.4
Operating income		71.3			64.9			135.5			139.5
Interest income		3.4			6.0			7.0			12.5
Interest expense		(6.7	)		(10.7	)		(13.8	)		(21.3	)
Other loss		(0.6	)		(0.1	)		(2.1	)		(1.1	)
Income before income taxes		67.4			60.1			126.6			129.6
Income tax provision		26.0			13.1			46.4			40.1
Net income	$	41.4		$	47.0		$	80.2		$	89.5
Net income per share:
Basic	$	0.32		$	0.34		$	0.61		$	0.66
Diluted	$	0.32		$	0.34		$	0.61		$	0.65
Shares used in computing net income per share:
Basic		131.2			136.7			131.2			136.4
Diluted		131.2			139.0			131.3			138.0

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RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(In millions)
	June 30,		December 31,		June 30,
	2008		2007		2007
Assets
Current assets:
Cash and cash equivalents	$	577.8	$	509.7	$	630.4
Accounts and notes receivable, net		191.9		256.0		169.5
Inventories		626.3		705.4		612.3
Other current assets		103.5		95.7		124.6
Total current assets		1,499.5		1,566.8		1,536.8
Property, plant and equipment, net		278.8		317.1		348.8
Other assets, net		117.2		105.7		101.3
Total assets	$	1,895.5	$	1,989.6	$	1,986.9
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term debt, including current maturities of long-term debt	$	32.3	$	61.2	$	192.7
Accounts payable		190.5		257.6		173.6
Accrued expenses and other current liabilities		337.4		393.5		326.1
Income taxes payable		15.5		35.7		6.4
Total current liabilities		575.7		748.0		698.8
Long-term debt, excluding current maturities		349.0		348.2		340.1
Other non-current liabilities		114.2		123.7		136.8
Total liabilities		1,038.9		1,219.9		1,175.7
Stockholders’ equity		856.6		769.7		811.2
Total liabilities and stockholders’ equity	$	1,895.5	$	1,989.6	$	1,986.9

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RADIOSHACK CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
	Six Months Ended
	June 30,
	2008			2007
Cash flows from operating activities:
Net income	$	80.2		$	89.5
Adjustments to reconcile net income to net cash provided by     operating activities:
Depreciation and amortization		49.6			58.3
Impairment of long-lived assets and other charges		1.2			1.1
Stock option compensation		5.7			4.9
Net change in liability for unrecognized tax benefits		2.3			(10.0	)
Provision for credit losses and bad debts		--			0.2
Deferred income taxes		0.7			0.9
Other Items		9.6			(1.1	)
Changes in operating assets and liabilities:
Accounts and notes receivable		63.9			79.3
Inventories		74.4			139.8
Other current assets		(2.8	)		(5.5	)
Accounts payable, accrued expenses, income taxes payable and       other		(163.7	)		(203.2	)
Net cash provided by operating activities		121.1			154.2
Cash flows from investing activities:
Additions to property, plant and equipment		(25.4	)		(21.9	)
Proceeds from sale of property, plant and equipment		0.3			1.3
Other investing activities		1.0			1.8
Net cash used in investing activities		(24.1	)		(18.8	)
Cash flows from financing activities:
Purchases of treasury stock		--			(46.5	)
Proceeds from exercise of stock options		--			77.1
Changes in short-term borrowings and outstanding checks in excess     of cash balances, net		(23.9	)		(7.6	)
Reductions of long-term borrowings		(5.0	)		--
Net cash (used in) provided by financing activities		(28.9	)		23.0
Net increase in cash and cash equivalents		68.1			158.4
Cash and cash equivalents, beginning of period		509.7			472.0
Cash and cash equivalents, end of period	$	577.8		$	630.4

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RADIOSHACK CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited)
Net Income	Three Months Ended						Three Months Ended
	June 30, 2008						June 30, 2007
	$ mill			EPS			$ mill			EPS
Net Income-Reported	$	41.4		$	0.32		$	47.0		$	0.34
Add back:
Campus lease amendment charge		7.4			0.05			-			-
Deduct:
Favorable sales tax settlement		(3.1	)		(0.02	)		-			-
Income tax reserve credit		-			-			(10.0	)		(0.07	)
Net Income-Proforma	$	45.7		$	0.35		$	37.0		$	0.27

Operating Income	Three Months Ended
	June 30,
	2008			2007
Operating Income-Reported	$	71.3		$	64.9
Add back:
Campus lease amendment charge		12.1			-
Deduct:
Favorable sales tax settlement		(5.1	)		-
Operating Income-Proforma	$	78.3		$	64.9

Management believes Net Income-Proforma and Operating Income-Proforma, non-GAAP financial measures, to be a relevant indicator of RadioShack's operating performance without one time and unusual events which could mask its performance for the period shown when compared with the prior year.  These proforma amounts above should not be used by investors or others as the sole basis for formulating decisions or as a substitute for measures prepared in accordance with GAAP as it excludes a number of important items.  Management also compensates for limitations in these proformas by using GAAP financial measures in managing RadioShack.

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