hhgregg Net Falls 2.2 Percent in Q2

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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money