hhgregg Posts Q4 Loss

hhgreggINDIANAPOLIS-hhgregg ended its 2014 fiscal year on a sour note, reporting a net loss in its fourth quarter of $7.2 million, compared to net income of $9.9 million in its fourth quarter of last year.

The loss dampened the retailer's net income for the fiscal year as a whole, which ended on March 31, to $228,000, down 99.1 percent from the prior year. Fourth-quarter net sales fell 9.9 percent to $538.3 million, bringing the net sales total for the year to $2.3 billion, 5.5 percent off from the previous year. Same-store sales for the quarter dropped 9.9 percent, and same-store sales for the year were down 7.3 percent.

Dennis May, hhgregg's president and CEO, said the fourth-quarter results were due to "a number of headwinds," including the volatility of the consumer electronics business and the severe weather in the first three months of the calendar year. On the plus side, May said, appliances posted a same-store sales increase for the 11th straight quarter.

Gross margin in the quarter dropped 154 basis points to 28.3 percent. Selling, general and administrative expenses were slimmed by 1.6 percent in dollars but picked up 191 basis points as a percentage of sales, to 22.6 percent.

May said hhgregg will continue the transformation of its business for the balance of the current fiscal year. The retailer will focus on redefining its sales mix, enhancing and differentiating the customer experience, expanding its e-commerce sector and launching new customer-facing technologies, he 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.


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 May digital issue


    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.


    • 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