HHGregg reports smaller loss on improving same-store sales

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HHGregg Inc. saw a smaller loss in its latest quarter as the Indianapolis-based electronics and appliance retailer eked out a slight increase in same-store sales.

The company Thursday morning reported a loss of $1.3 million, or 4 cents per share, for the fiscal first quarter ended June 30, compared with a loss of $5.7 million, or 16 cents per share, in the same period a year ago.

Revenue for the quarter rose 7.2 percent, to $524.9 million.

Same-store revenue, which measures sales at stores open more than a year, increased 0.8 percent.

“The quarter’s results significantly outperformed our prior year earnings comparison, due to our positive comparable store sales and lapping the cost-cutting measures put in place during the second quarter of the prior fiscal year, and are in-line with our expectations,” HHGregg CEO Dennis May said in a prepared statement.

HHGregg’s earnings beat analysts’ expectations of a 15-cent loss per share on revenue of $523.8 million.

The company continued to see declines in television sales and increases in appliance sales. About 52 percent of its sales came from appliances in the latest quarter, compared with 49 percent a year ago. Roughly 34 percent of the retailer’s sales came in the video category in the last quarter, down from 40 percent last year.

HHGregg saw double-digit comparable-store decreases in cameras, camcorders and small electronics, partially offset by increases in sales from mattresses, furniture and fitness equipment.

The company operates 228 stores in 20 states.

Shares in HHGregg closed Wednesday at $15.69, down from a 52-week high of $17.20 reached in early June.
 
 

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