) hasn't been profitable since 2012 as sales and margins have
eroded. But this Zacks Rank #5 (Strong Sell) has a new CEO and is
testing new concept stores. Is it too late to save this electronics
RadioShack operates 4300 stores in the United States and 270 stores
in Mexico. It also has about 1,000 dealer and other outlets
On July 1, RadioShack opened up a new concept store on Manhattan's
Upper West Side which aims to highlight popular tech devices from
Apple, Samsung and the others. There is more hands on testing
Over the next several weeks, RadioShack also expects to open up
different store prototypes across the New York area, including New
Jersey, and also in Texas. Data from the response to the new stores
will be used in determining which of the other 4300 stores across
the U.S. will get reconfigured.
The company is undergoing changes at the hands of new CEO Joseph
Magnacca, who came to RadioShack in February 2013 from Walgreens.
He instituted a 100 day plan to turn it around. He is behind the
recent concept store changes but he needs time to implement the
How Much Time Does RadioShack Have?
On Apr 23, RadioShack reported its first quarter results which were
pretty dismal. Comparable same store sales fell 5.7%. Inventory was
up 27% and margins eroded.
RadioShack expected continued weakness in first half of 2013. It's
scheduled to report second quarter results on July 24 so further
details will soon be forthcoming.
For now, however, there is no end in sight to the earnings losses.
The company is expected to lose 76 cents in 2013 and another 51
cents in 2014.
As for liquidity, at the end of the first quarter it had total
liquidity of $820 million.
Shares Sinking Again
Shares have been on an up and down ride the past few months.
Recently, they have been sinking again.
Instead of taking a chance on the RadioShack turnaround, investors
should take a look at Texas retailer
). It is a Zacks Rank #1 (Strong Buy). It sells not only
electronics but is also a play on the housing rebound with beds and
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