Could Staples Be the Next RadioShack?
Both Staples and Costco disappointed investors this quarter, but one key difference here separates a long-term performer from a company that could be in serious trouble. While Costco reported a 15% decline in profits, its third-straight quarter of underperforming expectations,Motley Fool analyst Bill Mann says, on Thursday's Investor Beat, that the company draws its real revenue from its membership model, and that this is a business that is still very strong at the moment. Meanwhile, with Staples announcing that it will be closing 10% of its North American stores, the situation for this company could be much more dire.
Then, Mr. Peabody & Sherman hits theaters on Friday, which could be good news for DreamWorks Animation. Bill discusses with host Chris Hill why he is bullish on the company. He sees its success as being more about a collection of characters that can continue to be successful, rather than being dependent on how well-received a single movie from the company ends up being at the box office. And with the sequel to How to Train Your Dragon coming out later this year, it could be a good year for the company.
So are there retailers out there who are winning?
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The article Could Staples Be the Next RadioShack? originally appeared on Fool.com.Bill Mann owns shares of Costco Wholesale. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale and DreamWorks Animation. The Motley Fool owns shares of Costco Wholesale and Staples. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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