Both RSH and OT: I tried.....I really, really tried hard........
Oy vey, I have never, ever, ever, ever, ever seen anything like it in my life and I've been around a bit.
I don't take failure easily. I don't like doing this - hate it actually. I'm truly a bit sad about it......I have failed....sigh.....
<click> <poof!> Gone. Back to business at hand
now.....continuing RSH DD.....BB - 2006 10-k is interesting. Lots of stuff happened that year although I don't see any clear specific explanation for EBIT declines other than (I vaguely remember all this when it was happening:
TURNAROUND PROGRAM REVIEW
Due to negative trends that developed in our business during calendar year 2005, we announced a turnaround
program on February 17, 2006, that contained four key components:
- Update our inventory
- Focus on our top-performing RadioShack company-operated stores, while closing 400 to 700 RadioShack company-operated stores, and aggressively relocate other RadioShack company-operated stores
- Consolidate our distribution centers
- Reduce our overhead costs
Through December 31, 2006, we conducted a liquidation of certain inventory during the summer and fall of 2006 and replaced underperforming merchandise with new faster-moving merchandise. During the summer of 2006, we also focused on our top-performing stores and completed the closure of 481 underperforming stores, reducing the number of retail employees in connection with these closures. Additionally, we consolidated our distribution centers in the fall of 2006. Management has also reduced our cost structure, including our advertising spend rate and our workforce within our corporate headquarters. A number of other cost reductions have also been implemented. As of December 31, 2006, we considered our turnaround program to be substantially complete. |
