hhgregg Stock Dives on Preliminary Sales

hhgregg shares have been down around 20 percent in pre-market trading on the Bloomberg report.

Indianapolis-based hhgregg Inc. (NYSE: HGG) is estimating net sales of approximately $593 million for its fiscal third quarter, down about 11 percent compared to the same period the previous year. Chief Executive Officer Dennis May says the company was "challenged by the competitive pressures in the market." The company’s stock is down more than 25 percent on the news.

May says he believes the company’s strategic investments, with an increase in furniture sales and 4K TVs. He says, while the company is disappointed in the overall performance, "We remain confident, in line with our prior expectations, that we will generate positive adjusted EBITDA for the fiscal year."

hhgregg is set to release its fiscal third quarter results on January 28.