Fort Worth, Texas - RadioShack chairman and CEO Julian Day will retire in May after nearly five years in those roles.
He will be succeeded as CEO by chief financial officer Jim Gooch, who was immediately promoted to president, while presiding board director Daniel Feehan, president/CEO of Cash America International, will become non-executive board chairman upon Day's retirement.
A retail turnaround specialist with a reputation for slashing costs, Day led an overhaul of RadioShack operations that helped streamline the business and latter launched a rebranding campaign dubbed "The Shack" which repositioned the company toward a younger, 21
"Julian has led RadioShack through a significant business transformation since 2006," Feehan said in a statement. "His highly disciplined approach to cost control and focus on profitability has greatly strengthened our balance sheet and financial foundation. At the same time, he also brought value to our brand by instilling a strong sense of customer service in all of our retailing channels and has revitalized our company with consumers. Thanks to his leadership and the efforts of RadioShack employees, our company is financially strong and has a rebalanced product portfolio."
Day noted, "It has been a privilege to be a part of the transformation of RadioShack. We have built an organization that is well positioned for the future, and this is the right time for me to step aside and for the company to transition to new leadership."
Gooch, 43, joined RadioShack in his current position in August 2006 and has been responsibility for a broad range of functions including finance, global sourcing and supply chain management including inventory planning, information technology, real estate, investor relations, public relations and human resources.
Prior to joining RadioShack, Gooch spent 10 years at Kmart Holding Corp. under Day, who had variously served there as president, COO and CEO.
Feehan added that Gooch "has been a key element" of RadioShack's success. "I am delighted that in Jim we have a dynamic senior executive, well-known and respected by our stakeholders, who can effect a seamless transition and drive consistent growth in the business."
Separately, RadioShack announced its preliminary unaudited results for the fourth quarter ending Dec. 31, 2010. Preliminary total net sales and operating revenues for increased approximately 4 percent to $1.4 billion, and comparable-store sales for U.S. company-operated stores and kiosks increased approximately 1 percent.
Preliminary total net sales and operating revenues in the quarter were driven primarily by wireless platform sales growth. However, preliminary consolidated gross margin declined, primarily due to the disappointing performance of the company's T-Mobile business, a higher sales mix of lower-margin wireless handsets, and incremental promotional and clearance markdowns associated with seasonal sell-through and product transitions in non-wireless platforms.
An increase in preliminary consolidated selling, general and administrative expenses reflects infrastructure investment to support the Target Mobile kiosk roll-out, partially offset by continued cost control initiatives.
RadioShack expects to report final audited fourth-quarter and full-year financial results the week of Feb. 21, 2011.