hhgregg Net Falls 20 Percent in Second Quarter
November 9, 2010,
INDIANAPOLIS-Net income for mattress/appliance retailer hhgregg dropped 20 percent in its fiscal second quarter, to $3.4 million.
The bottom line suffered in spite of a 45 percent increase in net sales to $480.9 million in the quarter, which ended Sept. 30, 2010. Part of the quarterly numbers were a 41 percent jump in selling, general and administrative expenses and a 46 percent rise in cost of goods sold--the latter of which led to an 80 basis-point drop in gross margin to 30 percent. hhgregg also reported a 77 percent climb in net advertising expense.