Posted on 03/04/2014 6:06:03 AM PST by mykroar
Struggling retailer RadioShack Corp reported a wider quarterly loss on Tuesday and said it will close up to 1,100 U.S. stores after a huge drop in sales over the holidays, sending the stock down more than 15 percent.
Sales at the Fort Worth, Texas-based chain have been in free fall amid executive departures, tough competition and an image problem. Despite its ubiquitous presence in the United States, analysts say it has not done enough to transform itself into a destination for mobile phone shoppers or become hip enough to woo younger shoppers.
Its net loss widened to $191.4 million, or $1.90 a share, in the fourth quarter, from $63.3 million, or 63 cents, a year earlier.
Sales fell to $935.4 million in the quarter covering the all-important holiday season, from $1.17 billion in the year-ago period. Analysts, on average, looked for sales of $1.12 billion, according to Thomson Reuters I/B/E/S.
Sales at stores open at least a year fell 19 percent on weak customer traffic.
Chief Executive Officer Joe Magnacca, who took the helm in February 2013, has said he expected the turnaround to take several quarters.
The stock fell 15.4 percent to $2.30 in premarket trade.
How can this be? The economy is “recovering” at 3%!
It hasn't.
Well, to be honest, they regularly replace their cell phone cover display racks and update their Hello Kitty ipad covers.
You know what’s funny? There’s a local station that calls itself ‘pirate’, but they have an FCC license.
I agree on both counts. The parts section is horribly small. And, to top it off, the ‘help’ usually don’t even know the names of common parts.
And the service is pushy, of course. Every time I go into one...they see my phone....and ask how long I’ve had it, do I like it, how long until my contract expires. Very pushy - I’m sure that comes from headquarters.
But also arrogant. Some of these ‘wiz kids’ are too dumb to understand how much they don’t know...and that knowledge of the latest cell phone model isn’t an indicator of genius.
They’ve kicked out the crusty HAM radio operators, and put in teenagers - just like the cell phone kiosk at the mall.
I’m shocked they’re still around, really.
Now you see, we’re not highly paid consultants but it seems to me their biggest asset was their stores. Had they made a calculated merger or partnership with a popular website like newegg they could have had a terrific symbiosis.
Oh, of course. With their consultants and MBAs, they will fail spectacularly, and look and sound good while doing it! If you look back at the people and businesses that literally built this country, you didn't have so much of the 'educated/political class' like we have today. You had people with ideas/vision who were willing to work their asses off, take risks, and grow. They were guided by common sense and the drive for profits, in a country that allowed them the freedom to do so.
It has all been turned on its head, and is the polar opposite of what made us great. Our road to ruin is going to be paved with the overly "educated" who are just barely more than FOOLS, highly paid consultants, bureaucrats, and politicians who claim they only want the best for everyone and KNOW just what to do to MAKE it happen.
“Just watch..theyll announce a merger with JC Penny”
yup then they can sink together, or maybe merge with Sears K-Mart and the whole bunch can go down together.
“Im shocked theyre still around, really.”
Back when Lafayette wa a round RS was a major player, then Lafayette electronics went out of business, RS had the electronics parts business to themselves, they got fat, happy and mostly dumb and now they are junk.
And like you, I am amazed that they are in business today.
I’m sure they’ve been hurt by a decline in interest in home tinkering, and cut rate process on the internet. And I understand that is out of their control.
But they have strayed from having ‘neat’ stuff. By neat, I mean stuff you couldn’t find anywhere else, especially the toys and RC stuff.
Recently RC stuff just made a quantum leap. The cars have given up on fuel engines, and now there are very high powered electric ones. And the quad copters make it so almost anyone can fly a hovering RC. But I don’t see this stuff at my Radio Shack. All I see is very expensive and unimpressive RC toys that look like they are meant for toddlers.
Treat your customers like crap, sell them crap, and overcharge them for your crap and it’s a wonder it didn’t go completely belly up 30 years ago.
Here’s the problem: http://www.highbeam.com/doc/1P2-7652350.html
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