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.


  • Von Tobel Cites Brass Textures Among Top Trends

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN cover for September 2017


    September 2017


    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.


    •  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.