hhgregg Reports Loss
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based hhgregg Inc. (NYSE:HGG) is reporting a fiscal second quarter net loss of $10.4 million, compared to net income of $3.7 million during the same period the previous year. Chief Executive Officer Dennis May says the results reflect “challenges and volatility” in the consumer electronics business.
October 31, 2014
News Release
Indianapolis, Ind. — hhgregg, Inc. (“hhgregg” or the “Company”) today reported net loss of $10.4 million, or $0.37 per diluted share, for the three month period ended September 30, 2014, compared with net income of $3.7 million, or $0.12 per diluted share, for the comparable prior year period. For the six month period ended September 30, 2014, the Company reported net loss of $20.7 million, or $0.73 per diluted share, compared with net income of $2.4 million, or $0.08 per diluted share for the comparable prior year period. The decrease in net income for the three month period ended September 30, 2014 was largely due to a comparable store sales decrease of 11.4%. The decrease in net income for the six month period ended September 30, 2014 was largely due to a comparable store sales decrease of 10.9%.
Dennis May, President and CEO commented, “Our quarterly results continue to reflect the challenges and volatility inherent to our business and the consumer electronics category. While we have made progress in repositioning our merchandise offering towards appliances and other home products, this transition is ongoing. We will continue to make investments in our infrastructure and merchandising initiatives in future quarters and we believe we are well positioned to monetize on the investments made in the first half of the year during the holiday selling period and beyond. We have started to see improvements in our business trends with our post-Labor Day sales being down mid-single digits, which was driven by improvements in trends across all product categories.”
Net sales for the three months ended September 30, 2014 decreased 11.0% to $505.9 million from $568.3 million in the comparable prior year period. The decrease in net sales for the three month period was primarily the result of a comparable store sales decrease of 11.4%. Net sales for the six months ended September 30, 2014 decreased 10.5% to $978.2 million from $1,093.2 million in the comparable prior year period. The decrease in net sales for the six month period was primarily the result of a comparable store sales decrease of 10.9%. The Company experienced a 59% and 62% increase in comparable sales on its e-commerce site for the three and six months ended September 30, 2014, respectively.
Source: hhgregg Inc.