Sozzi's Retail Roundup: Radio Shack Abuzz After Super Bowl, But Still Struggling
Brian Sozzi, CEO and Chief Equities Strategist at Belus Capital Advisors dropped by on Benzinga's PreMarket Prep on February 5 to discuss retailers.
While the Seattle Seahawks won the Super Bowl, Radio Shack (NYSE: RSH) won the “commercial-bowl” with its self-mocking ad that “the 80s called…they want their store back.”
Sozzi received an e-mail from a client asking if he should be buying shares, as the company is likely to generate a lot of hype following its viral commercial. Sozzi said that he cannot get behind the name, especially after the company announced the day after the Super Bowl that it will close 500 locations.
Even worse, according to Sozzi, Radio Shack has created a scenario in which customers who are hoping to visit a remodeled and visually appealing store will be disappointed. Sozzi visited a Radio Shack in New York City that did not resemble anything like the ones depicted in the commercial.
“Radio Shack still resembles the Radio Shack that was in the ad that they were tearing down and they just don't have the finances to do this massive re-modelling program.”
— Brian Sozzi (@BrianSozzi) February 3, 2014
Sozzi went as far as saying that Radio Shack is “producing some of the worst sales and margins results in the entire mall scene, even compared to J.C. Penney. You are getting the impression that their holiday quarter was really, really bad,” and that the company is still trying to raise money that “would be very penalizing.”
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.