Stifel says RadioShack needs strategy shift
Stifel analyst David Schick said Wednesday that he expects RadioShack Corp.'s management to outline a new strategic blueprint later this month to help the struggling electronics retail chain.
THE OPINION: The analyst said weak trends that have pressured RadioShack for some time continued to weigh on the company in the first quarter.
Electronics retailers have been dealing with tough competition, as more consumers buy electronics from online merchants like Amazon.com, and discounters expand their own electronics offerings. RadioShack has also struggled with weaker demand for mobile phones.
RadioShack reported in February that it lost $63 million in the last quarter of 2012, its fourth consecutive quarterly loss.
Schick said the pressures on the company are well known and investors will be looking to new CEO Joe Magnacca for news. The company has already cut costs to the point that there is no room left to trim, according to Schick.
Magnacca previously said that the board would review its long-term strategic blueprint for the company in late March or early April. So investors will expect to hear a meaningful outline of these initiatives when the company reports first-quarter results later this month.
Schick said he believes RadioShack should pursue a more visible strategy, improve its private label program and close stores, among other things.
THE STOCK: RadioShack shares fell 13 cents, or 4.2 percent, to $3.02 in midday trading amid a broad market decline. The stock is down about 50 percent from this time last year.