RadioShack Corp. (NYSE: RSH) has had some disastrous years recently; frankly, it's hard for me to believe the company stays in business in an era of Best Buy and Wal-Mart. Except for small electronic parts and miscellaneous gadgets, does anyone shop at RadioShack for anything? Judging by the small parking lots at the RadioShacks I see, the foot traffic is pretty darn small. Yet, the chain just keeps on going and going. Perhaps partnering with Cingular Wireless and Sprint Nextel is keeping margins afloat in some way.

Since the firing of RadioShack's former CEO based on resume falsification in the midst of a terrible-performing year, RadioShack recently landed Oxford-educated Julian Day (subscription required) to take the helm and fix the fortunes of the electronics retailer. Day's already started the task by cutting costs at every angle and by instituting very strict financial controls, as the results for RadioShack's recent fourth quarter show. Earnings were up 60% YoY (year-over-year) on $1.5 billion in revenue, and RadioShack shares are up 61% in 2007.

Can this rapid turnaround continue? With Day at the helm, it probably will. Most likely, more underperforming stores will be closed and advertising spending will be cut and spent more responsibly. Alongside that will be Day's penchant for tight inventory management at all stores and distribution centers. In other words, Day is instituting standard management (competent) procedures to help get the retailer consistently in the black. So far, after eight months on the job, he's succeeding.