Indianapolis-based hhgregg Inc. (NYSE: HGG) is reporting a fiscal third quarter loss of $26.9 million, compared to a loss of $86.8 million during the same period in 2014. Chief Executive Officer Dennis May says competitive pressures in the market resulted in the company missing expectations.
"(We) continue to see the impact from our strategic investments in our transformation plan," said May. "Year to date we have now realized $48.9 million of cost savings and remain on track to meet or exceed our plan to save $50 million in fiscal 2016. These cost savings efforts have allowed us to generate $4.0 million more of Adjusted EBITDA fiscal year to date compared to the comparable prior year period and we remain confident we will generate positive adjusted EBITDA for the fiscal year."
May said hhgregg will continue to focus on its revenue generating initiatives. That includes furniture growth, premium televisions and expansion of the company’s Fine Lines brand.
hhgregg’s stock dropped over 25% earlier this month after the company released its preliminary net sales for the fiscal third quarter. Net sales were down nearly 11% at that time, a figure which did not change during the official fiscal third quarter operating results.