To demonstrate just how often I frequent RadioShack
In many respects, the results looked quite decent; earnings of $0.30 matched analyst projections and sales of $949 million beat their expectations. But still, total sales fell 4.4% as same-store sales dropped 4%, the latter of which management attributed to "lower sales in Sprint
CEO Julian Day stated he was "pleased with the overall outcome" of the quarter, as a tough January was followed by better sales and profitability trends in February and March. While selling, general, and administrative (SG&A) expenses fell, a lower gross margin from greater sales of lower margin items and increased promotional activity contributed to the 14% drop in operating income.
As we've been saying for a while now, cutting the fat at company headquarters and reducing overall costs can only take a company so far. Until sales trends improve, its long-term prospects remain hazy at best.
Investor patience appears to be running thin, as the share price has fallen back close to its 52-week low. The only reason I stepped foot into Radio Shack was because I had to replace a battery in a Radio Shack branded phone, leaving me with no other choice. I would have to say that at this point it's caveat emptor for current and prospective shareholders, primarily because I can't see why shoppers would head to RadioShack over rivals like Best Buy