hhgregg Sales Drop in Q3
Posted on January 14, 2013 by
INDIANAPOLIS-Third-quarter net sales for hhgregg fell 3.6 percent to an estimated $799.6 million, according to a preliminary report from the specialty retailer.
This includes a projected drop of 9.7 percent in same-store sales for the quarter, which ended on Dec. 31. The retailer's top line suffered from poor results in the video category (down 24.6 percent on a same-store basis) and "other" (mattresses and other products, off about 23.7 percent). Sales of appliances increased an estimated 6.1 percent.
Dennis May, hhgregg president and CEO, said declining demand for flat-screen televisions was a major factor in the dropoff in video sales. May added that appliances, which recorded its sixth straight quarter of upbeat same-store results, has now become the retailer's largest product category, and that the rollout of the furniture category and Apple products registered positive responses from the retailer's customers.
Net income is expected to total $17.4 million, a decrease of 22.7 percent from last year's third quarter.