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.
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.
Other Articles By Author
Von Tobel Cites Brass Textures Among Top Trends
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.