Thursday, April 17, 2014

Breakdown of Radio Shack SG&A Expense $RSH

SG&A total is 41% of revenue. That is 17% compensation, 7.3% rent, 5% advertising, and 11% "other".

CFO power move: completely stop advertising (when was the last time anyone saw an RSH ad??) and spend the $176 million (or whatever is budgeted for 2014) on buying back debt at 40 cents on the dollar!

1 comment:

Anonymous said...

They blew all their ad spend on one lame super bowl commercial.

They should enter investment real estate business by 1) reducing rent, 2) closing stores, 3) renting closed stores at higher rent.

They could also harvest portfolios of stores to telecoms, retailers, and new entrants.

Telecoms would likely purchase stores in cities where they are re-farming.

Walmart is one of many retailers looking to add more urban locations and could easily scoop up RSH.

Google is launching pilot stores and might pay a premium for prime RSH real estate in major cities as well as where it is launching fiber.

I think the equity is worth less than it is today but it will drag out a lot longer than people think (as the Onion article you posted earlier illustrates as well).