RadioShack saw sales decline 9.3% in the third quarter of 2007 compared with sales figures from 2006. Same store sales also decreased by 8.6%. Sales largely declined because of falling sales in wireless products in conjunction with the struggles of Sprint and Nextel. Despite falling sales, RadioShack cut costs and focused on high-margin products in order to maintain profitability. The company reported net income of $46.3 million in the third quarter of 2007, compared with a net loss of $16.3 million in the same quarter last year.
RadioShack’s announced that the company will start selling video games in its stores. This decision is being considered as an indication that the original concept promoted by the company is losing its relevance. Further, the stock has risen 40 percent this year in spite of the fact that sales have been falling for the last three quarters; this indicates that competition has intensified and the company’s business fundamentals are deteriorating.
Despite efforts to turn around its fortunes, Radio Shack's stock declined over 10% due to softening cellular phone sales. Revenues had decreased by 15% compared to the previous year.
After analyst decrease their ratings on RadioShack stock, the price drops four percent.
After posting higher than expected profits for the first quarter, RSH stock jumped from $26.95 to $29.07
After a year of struggling prices, RadioShack stock increases by almost $3 on the day Julian Day is named CEO.
