hhgregg Q4, FY Sales Fall
April 15, 2014,
INDIANAPOLIS-hhgregg said it is estimating its fourth-quarter sales to total $538.3 million, 9.9 percent down from the fourth quarter of last year.
This would bring its net sales for the fiscal year ending on March 31 to about $2.3 billion, a decrease of about 8 percent from the prior fiscal year. Same-store sales in the quarter were estimated to be down 9.9 percent. The computing/wireless and consumer-electronics categories logged in same-store sales drops of 22.6 percent and 18.9 percent, respectively. Appliances gained roughly 0.5 percent, and home products were down 0.4 percent on a same-store basis.
Dennis May, hhgregg's president and CEO, said the retailer's fourth-quarter results suffered from the extreme weather problems that beleaguered other U.S. retail chains. The weather had the biggest impact on hhgregg's stores in the Midwest and Mid-Atlantic regions, May said.
On the plus side, May said the fourth quarter marked the 11th straight quarter of same-store sales gains in appliances. In addition, hhgregg is anticipating renewed interest in the video category as consumers shift to ultra-high-definition televisions and larger screens. "We also believe that our strategic decision to transition from one furniture brand to five brands will strengthen our assortment of merchandise in the home products category," he said.
hhgregg will issue the full report on its fourth quarter and fiscal year on May 20.