OfficeMax Inc. said Thursday Net income fell 76 percent to $2.9 million, or 3 cents per share, from $12.1 million, or 14 cents per share last year. In a deal with RadioShack, RadioShack employees are selling mobile phones and other items in some OfficeMax stores.
The decreasing margins issue is not specific to RSH. SHLD and OMX showed that they are getting taken to the woodshed. But unlike RSH, their stocks were not punished but rather rewarded (relief rallies). RSH got double slammed, once before and once after. Listen to the commentary below. Even the 800 lb Gorilla (Walmart) is getting squeezed on margins with no end in sight! This is not a company specific issue. Look for RSH to recover nicely from this severely oversold position as the trading volume starts dropping in the coming days.