hhgregg Net Falls for Q4, Fiscal Year
May 21, 2013,
INDIANAPOLIS-Dropoffs in both sales and gross margin slashed into hhgregg's net income for both the fourth quarter and fiscal year ending on March 31.
Fourth-quarter net income fell 81.5 percent to $9.9 million, while for the year the net was $25.4 million, down 68.8 percent. Net sales for the quarter declined 2.5 percent to $597.6 million, and slipped 0.7 percent to $2.5 billion for the year. Same-store sales plummeted 9.8 percent in the quarter and 8.7 percent for the year.
Video was the weakest product category for hhgregg with declines in sales of 25.1 percent in the quarter and 22.6 percent for the year. For the retailer's "other" product category, which includes furniture and mattresses, sales were off 3.1 percent in the quarter and 13.5 percent for the year.
Gross margin was down 60 basis points in the quarter, finishing at 29.9 percent. Selling, general and administrative expenses shed 2.5 percent in dollars and were flat as a percentage of sales at 20.7 percent.
Dennis May, hhgregg's president and CEO, said same-store sales did improve in each month of the quarter, with March "materially better" than January. May also said this trend has continued thus far in the first quarter of the new fiscal year, with same-store sales rising in the low single digits. "While I am pleased with the current trends in the business, we are cautiously optimistic given the inherent volatility that exists in our business and the importance of the upcoming Memorial Day sales period," May said.