Check Out RadioShack reporting a third-quarter profit compared with a loss a year ago, as the struggling consumer electronics retailer cut expenses and improved margins. 

But sales fell as RadioShack continues to face intense competition from retailers like Best Buy and Circuit City. Sales at its stores open at least a year, a key measure of retail performance, dropped 8.6 percent.

RadioShack has been closing unprofitable stores and reducing staff since Julian Day, a turnaround veteran, became chief executive last year.

But Day is trying to turn around a business that is searching for a niche in the midst of a cut-throat business enviroment. Consumer electronics retailers are now headed into the crucial holiday selling season having barely recovered from last year, when retailers hurt their own profits by slashing prices on flat-panel TVs to win sales.

Luckily, analysts expect the competitive environment, at least when it comes to TVs, to be a little bit more sane this year.

Also in the basket:

Office Depot delays results due to review

Kellogg third-quarter earnings rise

Retailers Are on Edge About Holiday Season (WWD)

Coke finally scores another winner (USA Today)

(Photo: RadioShack’s Web site)