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More on RadioShack (RSH): Q2 gross margins fell to 37.8% vs. 45.9% in the year-ago period,...

More on RadioShack (RSH): Q2 gross margins fell to 37.8% vs. 45.9% in the year-ago period, attributed to the customer shift to lower-margin smartphones. CEO Jim Gooch: "The initiatives we have underway have not yet generated enough momentum to reverse the trend." Shares collapsing, -20.5% premarket.
Comments (4)
  • chopchop0
    , contributor
    Comments (3006) | Send Message
     
    Last one out, please turn off the lights. You'll be saying hello to CC soon enough, RSH.
    25 Jul 2012, 09:26 AM Reply Like
  • rsmh
    , contributor
    Comments (28) | Send Message
     
    Sadly it appears that we will be riding the smartphone to the grave. I wish there would be a recognition that the good old boring core products we have been known for could still be a profitable business. I know that they don't sell as much as they used to. But it is a space that no one else occupies any more and we could own the niche at a brick and mortar level. And again, we could actually be profitable, if boring.
    25 Jul 2012, 10:06 AM Reply Like
  • billddrummer
    , contributor
    Comments (1670) | Send Message
     
    That's what happens when you emphasize low-margin commodity type products in the quest to 'revitalize' the brand.

     

    In retrospect, the company should have stuck to its knitting, selling parts and accessories--high margins, boring, but predictable.
    26 Jul 2012, 12:14 AM Reply Like
  • LDJ
    , contributor
    Comments (81) | Send Message
     
    I was hopeful but now I really relieved that I sold when I did.
    29 Jul 2012, 09:37 AM Reply Like
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