hhgregg Reports Drop in Net Sales

Posted: Updated:

Indianapolis-based hhgregg Inc. (NYSE: HGG) has released preliminary fiscal third quarter net sales results. The company is reporting $453 million in net sales, a 24 percent decrease from the same period the previous year.

hggregg says comparable store sales decreased an estimated 22 percent, while the consumer electronics category dropped an estimated 39 percent. The company adds the numbers could see adjustments ahead of its full fiscal third quarter earnings report, which will be released January 26.

Chief Executive Officer Robert Riesbeck says the company was challenged by competitive pressures in the market during the holidays, specifically in consumer electronics. He says the company's transition to a new distribution center also had a temporary negative impact on sales.

"Although we are disappointed with our overall performance during the quarter, we are pleased with our investments made to shift our focus from consumer electronics to appliances and furniture, through resetting store layouts, adding Fine Lines departments and promotions focused on our appliance business," said Riesbeck. "The consumer electronics category was very competitive again this holiday season. We made the strategic decision to compete less in this category, particularly at the entry level price points."

Riesbeck says, going forward, hhgregg will continue its focus on appliance and home products while repositioning its consumer electronics business to have more of a focus on premium models. The preliminary results show continued loss for the company, which in November reported a loss of $18.4 million during the fiscal second quarter.

  • Perspectives

    • Investing Lessons from Mount Elbert

      With little mountain-climbing experience under any of our belts, a few friends and I decided to take on Mount Elbert, Colorado’s tallest mountain. While regular climbers may not consider this “Gentle Giant” a tall task, it was for us inexperienced climbers.  Is investing your “tall task”? If so, you can learn a lot from our experiences. And you won’t have to climb a mountain to do it!



  • Most Popular Stories

    • ‘Potential’ Fueling Downtown Makeover in Fort Wayne

      As Fort Wayne prepares to christen its latest big downtown project, Mayor Tom Henry says there are no signs of transformational development slowing down in the state’s second largest city. The Landing, a $34 million downtown redevelopment project, is expected to officially open soon, one of an estimated 14 projects that Henry says can help Fort Wayne become a destination city. Since the opening of Parkview Field more than a decade ago, Henry says momentum has...

    • New study reveals best place in Indiana for young families

      And the Best Place for Young Families Goes To...

      What do you look for in a community when deciding where to start a family and raise your children? There can be several factors to weigh in making a sound decision. Housing affordability. Unemployment rates. Quality of education. Mortage website Lendingtree.com has released the results of a study pointing to the best places for young families in Indiana.

    • (image courtesy of WPTA TV)

      Indiana Plants Impacted by UAW Strike

      The United Auto Workers union, which totals approximately 49,000 workers at 33 General Motors Co. (NYSE: GM) plants nationwide, went on strike at midnight. The strike affects workers at GM plants in Fort Wayne, Bedford, Marion and Kokomo. The Fort Wayne plant, which assembles full-size pickup trucks, employs about 4,500 UAW workers. Our partners at WPTA-TV in Fort Wayne report several hundred were seen on the picket line throughout the day. In all, about 7,000 UAW...

    • Photo courtesy of Bristol Parks

      Startup Plans to Add 250 Jobs By 2021

      A metal forming startup is seeking to use a facility in Bristol that has been empty since 2017 for a major manufacturing operation. The Elkhart Truth reports Brinco will invest $52 million in the project and add 250 jobs.

    • Diamond K Sweets Fudge O'Bits

      Spencer Confectionery to be Featured on QVC

      Spencer-based Diamond K Sweets will feature their trademark product this fall on QVC. The company's Fudge O'Bits Holiday Bundle will soon be offered to QVC shoppers, which features its company's top  four selling flavors of fudge.