Mitchell Schnurman 
In speech, Day reveals only his weaknesses
Star-Telegram Staff Writer
Julian Day wrapped up RadioShack's annual meeting Thursday by thanking everyone for coming and saying he hoped to see them next year.
Then he remained at the podium a moment, awaiting the public response.
Nothing came. No hearty clapping, no thumbs-up from the crowd, not even polite applause.
It was an awkward few seconds and a bit painful to watch, until people started filing out. But the audience's reaction was right on, because Day had just laid an egg.
His performance at the annual meeting was so uninspired, so evasive, so superficial, that I had to wonder whether he has what it takes to make RadioShack hot again.
Seeing the chairman and CEO in that setting, I have a better appreciation for why he bars reporters from the annual meeting -- I had to buy a single share of company stock to get in -- and why RadioShack didn't even broadcast his remarks on the Web.
Day wasn't only dull and perfunctory; his presentation was so lackluster that it seemed he couldn't be bothered to make it special.
There was no PowerPoint touting last year's improvements, no hot products on display, no cute robots roaming the scene -- all features at RadioShack meetings in past years.
It goes without saying, but I'll say it anyway: Day was hired to deliver results, not wow a crowd. And he's done pretty well on that score, at least in many financial measures. But every leader has to be a motivator of some sort, too. And shouldn't the head of a national retailer be able to sell a little bit -- or at least know how to fake it?
If Day is short on charisma or just hates playing the public game, there are ways to compensate. He could call on a marketing chief to pump up the crowd. A clever, feel-good video would do wonders. Or he could score points for authenticity by simply giving some details about his strategy and thinking.
C'mon, boss, we hear from you only once a year: Throw us shareholders a bone.
Instead, Day gave a brief recap of RadioShack's financial improvements, calling 2007 a rebuilding year. Operating income and net profit posted sharp gains, and the company's cash position strengthened significantly.
"In short," Day said in his British accent, "I believe I can say we've greatly improved our profitability, liquidity, financial strength and shareholder equity."
Then he outlined RadioShack's priorities. The first, he said, is profitable sales.
Next is efficient cost management. Then it's solid inventory control. He wants to strengthen RadioShack's brand with good advertising and customer service. Finally, he wants to develop better managers at the company.
Well, who could argue with all that? Except that it's pretty much Business 101, the basic blocking and tackling of almost any company.
What about the Big Idea -- a plan for catching Best Buy and becoming relevant again?
Sales have been falling steadily since before Day arrived in July 2006. John Langston, a research analyst with Hodges Capital Management in Dallas, asked Day how he planned to get sales growing again.
"I agree with you that that question is out there -- 'What are you going to do to drive profitable sales?'" Day said. "If anything, we've heightened our focus on doing that."
He added: "Everybody at the company is working to bring that about."
No specifics, no elaboration.
RadioShack didn't broadcast the annual meeting, a spokesman said, because it's just a business meeting that wouldn't make news. But years ago, RadioShack used these occasions to outline new strategies (Sprint's store-in-a-store), unveil new initiatives (hiring developers to create unique products) and raise expectations (John Roach once forecast that earnings per share would rise up to 30 percent).
At the annual meeting in 1999, more than 600 people jammed a ballroom at the Worthington Hotel and gave then-CEO Len Roberts a rousing standing ovation. Roberts was a showman, a great communicator and motivator, and shareholders had to work hard to separate the hype from reality.
At Thursday's meeting in Fort Worth, just 65 people showed up, and more than half were directors, managers and staffers. And when it ended with a whimper, an unsettling question hung in the air: Is Day being cagey about his strategy for RadioShack, or is he still looking for one?
schnurman@star-telegram.com
