hhgregg Q3 Net Sales Off 11.6 Percent
Posted on January 6, 2014 by
INDIANAPOLIS-Net sales for specialty retailer hhgregg fell 11.6 percent, to $707.1 million, in its fiscal third quarter ending on Dec. 31, according to a preliminary report from the company.
The sales decrease included an estimated drop of 11.2 percent in same-store sales. hhgregg also reported significant declines in same-store sales by category--home products down 36.1 percent, computing and wireless off 24.5 percent and consumer electronics down 19.7 percent. Same-store sales of appliances were estimated to have increased 1.5 percent.
Dennis May, hhgregg president and CEO, said the third quarter was still "solidly profitable," but that diluted earnings per share would likely finish below the company's expectations when all of the numbers are counted. "Our holiday sales were significantly impacted by increased promotional offerings of televisions and tablet products across a variety of retail formats," May said. "While we are disappointed with these sales results, we made the strategic decision during the quarter not to fully participate in the heavily promotional environment."
May added that the heightened promotional nature of consumer electronics has underscored hhgregg's decision to shift its business increasingly toward appliances and home furnishings. He noted that the third quarter was the 10th consecutive quarter of same-store sales increases in appliances. "We plan to continue to implement initiatives to drive profitable sales and customer traffic in these and other newer categories," he said.