hhgregg Net Falls for Q4, Fiscal Year

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.

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