RSH - the greatest show on wall street
Bucks every mkt drop as if despite already floundering and already being grossly overpriced, they're going to pull rabbits from the wolf's hat and somehow thrive in what looks to be some very rough times for the consumer and the economy.
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Goldman buys up 13% share in Radio Shack
By Jonathan Birchall in New York
Monday Jun 11 2007 18:05
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RadioShack's shares have doubled to more than $30 since Mr Day, a Briton, joined the company in July last year. Its shares have been supported in recent weeks by speculation that Dell (NASDAQ:DELL) Computer might seek to link up or merge with the retailer as it seeks to move into direct sales.
Regarded as a turnround specialist with experience at Safeway and Sears, Mr Day had previously spent two years at Kmart Holdings. He was appointed at Kmart by Edward Lampert, the hedge fund investor, and brought the company out of bankruptcy in 2003.
RadioShack, which built its business in the late 1990s around the explosion of the mobile telephone and wireless communications market, has struggled to redefine itself in the face of an increasingly saturated wireless market and increased competition from retail outlets owned by the main telecom service providers.
It also suffered after Dave Edmonson was forced to step down as chief executive early last year amid revelations that he had misled the company over his academic record. Mr Edmonson departed weeks after the company announced a turnround plan that included closing 480 underperforming stores.
Under Mr Day, the retailer has cut a further 500 jobs. It has also focused on improving the levels of customer service in its small, neighbourhood-based stores, on better integration of its stores and website, and on improved inventory management.
The retailer acknowledged in late April that it continued to face challenges. Its first-quarter 2007 comparable store sales were down 9.2 per cent, while store closures contributed to a 14 per cent fall in total sales to $992m. |
