RadioShack, Coach And Harley-Davidson Release Earnings
Consumer electronics retailer RadioShack Corporation (NYSE: RSH) reported third-quarter financial results this morning. The company has been actively engaged in a comprehensive turnaround that has negatively impacted bottom line numbers in a few areas. Total net sales and operating revenues were $805 million, compared to $898 million in the same quarter last year. Gross profit was $243 million, compared with $341 million in last year’s third-quarter. Gross margin was 30.1 percent of net sales, compared to 38 percent last year. Both profit and gross margin were adversely impacted by approximately $47 million because the company decided to fast-track merchandise assortment changes by removing duplicate and unproductive items. Gross profit was also impacted by somewhat sluggish sales and decreased gross profit in RSH’s postpaid wireless business. Net loss was $112 million, or $1.11 per diluted share, compared to net loss of $47 million in Q3 of 2012. Having said that, RSH maintains a strong balance sheet with total liquidity of $613 million as of 30 September. Shares opened sharply lower in this morning’s trading, losing almost 10 percent.
Shares in handbag and accessory company Coach, Inc. (NYSE: COH) also gapped significantly lower this morning on the company’s lackluster Q1 earnings results. COH reported Q1 EPS of $0.77, $0.01 better than the $0.76 expected. Revenue for the quarter came in at $1.15 billion as opposed to the consensus estimate of $1.19 billion. Sales were down by 1 percent in North America to $778 million from $784 million last year, with comparable store sales down 6.8 percent. The one bright spot appears to be sales in China, which were up over 35 percent with comparable store sales seeing double digit growth. CEO Lew Frankfort noted that the company is doing well in emerging markets and Europe. Shares are down this morning by over 8 percent.
Harley-Davidson, Inc. (NYSE: HOG) had a nice quarter reporting a profit of $162.7 million, or $0.73 a share, up from $134.0 million, or $0.59 a share in the third-quarter of 2012. Revenue, inclusive of parts, accessories, apparel, and bikes rose 7 percent to $1.34 billion. Global retail sales of the company’s motorcycles rose 15.5 percent, with North American sales garnering an impressive 19 percent boost. HOG sells about two-thirds of its bikes in North America. Harley’s stock is up 50 percent on a year-over year basis and is flirting with its six year high of $66.95. The stock opened well above the $66 mark this morning and is now trading at over $65.30.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
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