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hhgregg Net Falls 2.2 Percent in Q2

Posted on November 1, 2013 by HFN Staff

hhgreggINDIANAPOLIS-A decline in sales pressured hhgregg's second-quarter net income into a 2.2 percent drop, to $3.7 million.

Net sales for the quarter ending on Sept. 30 were down 3.3 percent, primarily the result of a 6.2 percent decrease in same-store sales. Sales in appliances and home products made gains in the quarter, but these were offset by dropoffs in sales of consumer electronics, computing products and wireless products. Home checkouts received a boost by hhgregg's introduction of furniture and fitness equipment into its product mix.

Gross margin was flat at 29.6 percent. Selling, general and administrative expenses were down 4.3 percent in dollars and 20 basis points as a percentage of sales, to 21.2 percent.

Dennis May, hhgregg's president and CEO, said the retailer posted its ninth consecutive quarter of same-store sales growth in appliances and made progress in its sales floor reset and other initiatives in transforming its retail strategy. "While pleased with our early efforts in reshaping our sales mix, our sales performance continues to demonstrate that this transition will take time as we introduce new products to offset the sales losses from the consumer electronics category," May said.