hhgregg Net Jumps 53 Percent in Second Quarter

INDIANAPOLIS-Second-quarter net income for hhgregg skyrocketed 53 percent to $6 million as the specialty retailer rode on the back of a hefty 29 percent sales gain.

That increase took hhgregg to $618.6 million in net sales for the quarter, which ended on Sept. 30. The leap in sales came about largely due to the net addition of 35 stores over the previous 12 months, bringing the chain's total to 204. Same-store sales for hhgregg rose by a less spectacular 1.5 percent in the quarter.

The bottom line was also bolstered by the company's ability to keep expenses relatively check. While selling, general and administrative expenses rose 20 percent in dollars, they fell 150 basis points as a percentage of sales to 20.6 percent. Gross margin declined 140 basis points to 28.6 percent.

Dennis May, president and CEO, said hhgregg's strategic initiatives "began to gain traction and generate favorable results" in the quarter. These initiatives included launching the retailer's new website, increasing market share in appliances and expanding its assortment in the home-office category. "Additionally, we drove customer traffic and market-share gains through increased promotional activity, primarily in the video 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