hhgregg Loss Grows
hhgregg shares have been down around 20 percent in pre-market trading on the Bloomberg report.
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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 $18.4 million, compared to a loss of $10.1 million during the same period last year. Chief Executive Officer Rob Riesbeck says, despite the loss, the company showed continued growth in its appliances and furniture categories.
Riesbeck says that growth was offset by continued decreases in the consumer electronics category. He adds the company maintained a debt-free balance sheet at the end of the quarter.
"In the second fiscal quarter we continued to implement our strategic plan and to position hhgregg as the best option to purchase appliances, furniture and premium consumer electronics," said Riesbeck. "We also experienced solid growth through our online channel. Our focus on the customer experience continues to reflect positively as we again saw increases in customer satisfaction scores. We are energized by the upcoming holiday season as we look to maintain our steady progress."
The earnings report, which can be viewed in full by clicking here, comes nearly two weeks after the company reported the termination of Chief Merchandising Officer Keith Zimmerman. In a filing with the U.S. Securities and Exchange Commission, hhgregg did not state a reason for the termination, but said it has commenced a search for Zimmerman’s successor.
The company announced in September that it looking to hire 500 associates ahead of the holiday season.
