RadioShack Corporation (NYSE: RSH) is announcing news that may look shocking on the surface, but should come as no major surprise. CEO Julian Day is retiring and the guidance is disappointing. Day hired as a turnaround CEO and the task was just too daunting. It might not even be that Day was up for the task.
It was expected that RadioShack would turn around under Julian Day, but maybe the success was that he stopped the massive blood drain in the wake of fierce competition from larger and more dominant players. Still, that hardly makes a turnaround.
The last bastion of a turnaround was a possible sale. It failed to find buyers or failed when it reportedly put itself up for sale. Three years of sales figures stuck around $4.2 billion might be okay given the state of retailing in consumer electronics. The concern had been that estimates of $4.47 billion in sales for this year soon to end and $4.58 billion in sales for next year might be too high.
Unfortunately, recent 52-week lows had brought the stock back down to $17.61 and that is effectively where it started back in 2006. This morning we see shares trading under the 52-week range of $16.86 to $24.00, but the pre-market trading shows shares down more than 8% at $16.16
Just last week, RadioShack was featured as one of the nine great American companies which was not turning itself around.
JON C. OGG
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