Shocking news. I wish someone had predicted this. Wall Street will say it’s BULLISH!!!! They need some more muppets to fleece.
1,100 more empty stores in malls across America. I’m sure landlords will have no problem filling those spaces. That hot new retailer SPACE AVAILABLE will take over all of the locations.
I’m sure this brilliant retail strategy will surely revitalize RadioShack. I wonder when JC Penney, Sears, Kohls, and dozens of other retailers will be announcing the same brilliant strategy?
Here is a preview of RadioShack’s new ad campaign.
RadioShack to close 20% of its stores; earnings miss
Same-store sales slide 19%
By Ben Fox Rubin
RadioShack Corp. said Tuesday that it expects to close up to 1,100 U.S. stores, or about 20% of its footprint, while reporting its fourth-quarter loss widened significantly.
Shares (NYSE:RSH) dropped about 28% premarket as the struggling electronics retailer’s results were considerably worse than market expectations. The company said it will continue to have about U.S. 4,000 locations.
Chief Executive Joseph C. Magnacca said the poor results were driven by lower store traffic, intense discounting particularly in consumer electronics and a “very soft” mobility marketplace, as well as a few operational issues. Despite all those problems, he said the retailer is making progress on its turnaround.
Bloomberg
RadioShack has struggled to reverse a string of recent losses deepened by a sales strategy focused around smartphones, which failed to improve revenue over the last two years.
Magnacca, a former Walgreen Co. executive who was hired last February, outlined a strategy last year to refurbish stores by overhauling layouts and removing items from the shelves, part of a broader effort to improve perception among younger customers while keeping traditional “do-it-yourself” patrons satisfied.
Sales at stores open at least a year dropped 19%, driven by traffic declines and soft performance in the mobility business, while gross margin narrowed to 29.8% from 35.8%.
RadioShack reported a loss of $191.4 million, or $1.90 a share, compared with a year-earlier loss of $63.3 million, or 63 cents a share. Excluding some write-downs and other items, the per-share loss was $1.29.
Revenue sank 20% to $935.4 million.
Analysts polled by Thomson Reuters had most recently forecast a per-share loss of 14 cents on revenue of $1.12 billion.
The company ended the quarter with total liquidity of $554.3 million, including $179.8 million in cash and cash equivalents and $374.5 million available under a 2018 credit agreement.
Market up, oil and PM’s down. What changed so radically from yesterday?
Oh, I see, Putin said there is no need to send in troops into eastern Ukraine, yet. Yet, caused the market to rebound. Powerful word, yet.
I’ve never been really clear on what their marketing strategy and operational model is/was. There is a Radio Shack not far from where I live and on the three or four occasions I have had to visit it was either closed during regular business hours for no apparent reason or open but unable to really do any business because they didn’t have wha I was looking for ( simple wiring’parts). I almost bought a wireless keyboard / mouse combo until I noticed that the box had water stains all over it like it had been stored in a rowboat. Years ago it was a hack comic joke to observe that you couldn’t buy a 9V battery without completely a census type survey and that maybe it was just an elaborate front for the CIA. I caught the commercial they released recently about leaving the 80’s behind and it struck me sad than humorous.
I would say it’s a safe bet that RadioShack is close to folding up, maybe three years left before filing.
Thought of you when I saw the RS headline this morning, Admin.
While the world and MSM is distracted by the Ukraine, this little headline came out:
Fourth-quarter growth cut to 2.4 percent
WASHINGTON (Reuters) – The U.S. government slashed its estimate for fourth-quarter growth as consumer spending and exports were less robust than initially thought, suggesting some loss of momentum heading into 2014.
Gross domestic product expanded at a 2.4 percent annual rate, the Commerce Department said on Friday. That was down sharply from the 3.2 percent pace reported last month and the 4.1 percent logged in the third quarter.
And, while this could go under another thread, most everything that’s up right now focuses on international affairs. So, here’s some indication of just how screwed we are, as a nation… there’s no hope for any serious fiscal reforms when a majority of Americans want the gravy train to keep running:
Majorities of Americans Support Most Major Government Services
NEW YORK , N.Y. – March 4, 2014 – A new Harris Poll finds that large majorities of the public continue to be supportive of many key government services. This continuing sentiment underscores the difficulty our leaders face when attempting to curb government spending, given that nearly any cut under consideration, such as recent defense cuts proposed by U.S. Senator Chuck Schumer (D. NY) will be met with strong resistance from one segment or another.
Some top findings include:
The most popular services and programs, supported by 80% or more of the American public, are Medicare (with 90% supporting it either a great deal or somewhat), crime-fighting and prevention (89%), Social Security (also 89%), National Parks (83%), defense (82%) and federal aid to public schools (80%).
Also supported by large majorities of adults are Medicaid (77%), unemployment benefits (also 77%), environmental protection (76%), Head Start (75%) and intelligence services (71%).
Majorities – albeit smaller ones – also support food stamps (63%) and Immigration and Naturalization services (58%).
The only program on the list that is not supported by a majority of U.S. adults is foreign aid, with only 35% supporting it.
#
The linked press release breaks down data by generation, political affiliation, etc.
RS is still a marketable brand, if they would focus on scanners and radios, which I’ve heard suggested they might do, ala re-inventing themselves. It’s clear their current business model isn’t working.
Walmart is owned by one of the richest families in the world, yet they employ sweat shop labor tactics. Amazon is even worse. It doesn’t pay to be a nice guy. Barbarianism is the rule of the day.
Stocks are at an all time high. Yes, they are higher than ever before.
They are saying that several times today on teevee.
Things are so g-r-r-r-reat that we even have en extra billion buskeroos to give Ukraine. America, what a country.
Unrelated to the post, but found this interesting.
Christie’s new state budget: Almost all of the new spending is for state workers pension, health care, and pension obligation shortfalls.
Some highlights:
Though Christie is making the largest pension payment in state history, an astounding 78% of the $2.25 billion payment goes to the Accrued Unfunded Liability – “the legacy of years of irresponsibility from governors and legislators who paid little or nothing into the system.”
94% of the year-over-year growth from last year to this year is not going to schools, infrastructure, or higher education. It’s going to cover the growth in pension, health benefits, and debt service costs.
More than $3.2 billion of the $5.4 billion in increased revenue since fiscal year 2012 is being eaten up by pension, health benefits, and debt service obligations.
http://www.businessinsider.com/chris-christie-budget-pension-contribution-2014-2#ixzz2v0jnWFCL