FORT WORTH, TEX. ( TheStreet) -- RadioShack ( RSH) is clearing up its static, as the electronics retailer saw second-quarter profit climb 18%.

Lower expenses led RadioShack to earn $48.8 million, or 39 cents per share, compared with $41.4 million, or 32 cents, a year earlier (although last year's period was weighed down by a $4.3 million one-time charge related to an amendment to its corporate headquarters lease). Analysts expected earnings of 38 cents.

Sales slipped 3% to $965.7 million from $994.9 million, while total same-store sales fell 4%. The company attributed the decline to soft sales of wireless accessories, digital-to-analog converter boxes, GPS products, music players and digital cameras.

RadioShack has been working to reduce spending and in recent years has closed unprofitable stores and cut staff. As a result, total operating expenses in the quarter dropped to $357.1 million from $398.1 million.

The moves are yet another baby step in the replenishing of the struggling company as it works to keep up with Best Buy ( BBY) and discounters like Wal-Mart Stores ( WMT) and Costco Wholesale ( COST).

On Friday, RadioShack was upgraded by two analysts after it announced a deal with T-Mobile to offer its wireless services and products. RadioShack has been beefing up its wireless offerings to remain competitive with Best Buy's mobile division.

--Reported by Jeanine Poggi in New York.
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