hhgregg Posts Q4 Loss
May 20, 2014,
INDIANAPOLIS-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.