Radio Shack 2003 Annual Report Download - page 4

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Dear fellow
Shareholders:
The main reason why we
delivered on our financial
promises in 2003 is that we
stayed true to our strategy.
In my letter to you last year, I described several merchandising and operational initiatives, including improved supply chain
and store processes, that we believed would help deliver 2003 earnings per share (EPS) growth of 13-15%. I am pleased to
be able to report to you that not only did we meet those goals in 2003 – we exceeded them.
Our sales grew 2%, in line with our expectations. Our gross margin increased by 91 basis points — ahead of our
expectations — due primarily to strong results from our supply chain initiative. Our selling, general and administrative
expenses rose just 1%, also exceeding our expectations, as a result of many company-wide initiatives to reduce costs
and exiting several businesses that did not deliver shareholder value. Overall, in 2003 we delivered EPS growth of 22%, which
in turn helped drive a 64% increase in the value of RadioShack stock. Coupled with a 14% dividend increase in 2003, your
stock saw a total return in 2003 of 65%.
RADIOSHACK 2003 Annual Report
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