hhgregg Q1 Loss Grows as Sales Fall
July 31, 2014,
INDIANAPOLIS-The first-quarter net loss for hhgregg increased from $1.3 million last year to $10.3 million this year, as the specialty retailer' sales fell by double digits.
Net sales in the quarter, which ended on June 30, dropped 10 percent to $472.3 million, primarily due to the decrease of 10.2 percent in same-store sales. Computers and tablets and consumer electronics experienced the largest sales declines in the quarter, 29.5 percent and 18.7 percent respectively. Sales of home products slipped 0.5 percent, while sales of appliances were down 2 percent.
Gross margin picked up 20 basis points to finish the quarter at 29.7 percent. Selling, general and administrative expenses were down 2.3 percent in dollars but up 200 basis points as a percentage of sales, to 24.7 percent.
Dennis May, hhgregg's president and CEO, said, "While we expected the first quarter to be challenging given the difficult comparison to the prior year, we are not satisfied with our recent results." May vowed that the retailer would continue to invest in its effort to reposition its business with a broader assortment of home products. "We continue to make significant progress as it relates to the customer experiences inside our stores and on our website," he said.