IBJNews

HHGregg shares slump as profit, sales weaken

Back to TopCommentsE-mailPrintBookmark and Share

Shares of HHGregg Inc. dropped 13 percent in trading Thursday morning after the Indianapolis-based electronics and appliance retailer reported a slight drop in profit and a significant lag in same-store sales.

Shares fell to $15.43, down from a 52-week high of $20.75 reached Sept. 19.

The company Thursday morning reported a profit of $3.7 million, or 12 cents per share, for the fiscal second quarter ended Sept. 30, compared with $3.8 million, or 11 cents per share, in the same period a year ago.

Revenue for the quarter dipped 3.3 percent, to $568.3 million.

The results missed expectations of analysts, who predicted HHGregg would earn 14 cents per share on $610.9 million in revenue.

Same-store revenue, which measures sales at stores open more than a year, fell 6.2 percent, largely due to a decline in sales of televisions and computers.

“Though we continue to see headwinds in our consumer electronics business, we are pleased with our ninth consecutive quarter of comparable store sales increases in the appliance category,” HHGregg CEO Dennis May said in a prepared statement. “Additionally, we are pleased with the completion of our sales floor reset and the progress made with our other initiatives aimed at the long-term success of transforming our retail strategy.”

The company continued to see a bigger percentage of its sales coming from appliances rather than electronics. Fifty percent of its sales came from appliances in the latest quarter, up from 46 percent a year ago. Roughly 36 percent of the retailer’s sales came in the consumer electronics category, down from 42 percent last year.

New products, such as entertainment furniture, fitness equipment and mattresses, in addition to the continued focus on appliances, have helped the company replace dwindling sales in other electronics.

Sales of home products in the latest quarter accounted for 5 percent of the company’s sales compared with 3 percent in the year-ago period.

HHGregg operates 228 stores in 20 states. The company said it expects to open one new store in fiscal 2014, down from a previous expectation of five stores.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Why not take some time to do some research before traveling to that Indiana town or city, and find the ones that are no smoking either inside, or have a patio? People like yourself are just being selfish, and unnecessarily trying to take away all indoor venues that smokers can enjoy themselves at. Last time I checked, it is still a free country, and businesses do respond to market pressure and will ban smoking, if there's enough demand by customers for it(i.e. Linebacker Lounge in South Bend, and Rack and Helen's in New Haven, IN, outside of Fort Wayne). Indiana law already unnecessarily forced restaurants with a bar area to be no smoking, so why not support those restaurants that were forced to ban smoking against their will? Also, I'm always surprised at the number of bars that chose to ban smoking on their own, in non-ban parts of Indiana I'll sometimes travel into. Whiting, IN(just southeast of Chicago) has at least a few bars that went no smoking on their own accord, and despite no selfish government ban forcing those bars to make that move against their will! I'd much rather have a balance of both smoking and non-smoking bars, rather than a complete bar smoking ban that'll only force more bars to close their doors. And besides IMO, there are much worser things to worry about, than cigarette smoke inside a bar. If you feel a bar is too smoky, then simply walk out and take your business to a different bar!

  2. As other states are realizing the harm in jailing offenders of marijuana...Indiana steps backwards into the script of Reefer Madness. Well...you guys voted for your Gov...up to you to vote him out. Signed, Citizen of Florida...the next state to have medical marijuana.

  3. It's empowering for this niche community to know that they have an advocate on their side in case things go awry. http://www.youtube.com/watch?v=Lrst9VXVKfE

  4. Apparently the settlement over Angie's List "bundling" charges hasn't stopped the practice! My membership is up for renewal, and I'm on my third email trying to get a "basic" membership rather than the "bundled" version they're trying to charge me for. Frustrating!!

  5. Well....as a vendor to both of these builders I guess I have the right to comment. Davis closed his doors with integrity.He paid me every penny he owed me. Estridge,STILL owes me thousands and thousands of dollars. The last few years of my life have been spent working 2 jobs, paying off the suppliers I used to work on Estridge jobs and just struggling to survive. Shame on you Paul...and shame on you IBJ! Maybe you should have contacted the hundreds of vendors that Paul stiffed. I'm sure your "rises from the ashes" spin on reporting would have contained true stories of real people who have struggled to find work and pay of their debts (something that Paul didn't even attempt to do).

ADVERTISEMENT