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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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  1. to mention the rest of Molly's experience- she served as Communications Director for the Indianapolis Department of Public Works and also did communications for the state. She's incredibly qualified for this role and has a real love for Indianapolis and Indiana. Best of luck to her!

  2. Shall we not demand the same scrutiny for law schools, med schools, heaven forbid, business schools, etc.? How many law school grads are servers? How many business start ups fail and how many business grads get low paying jobs because there are so few high paying positions available? Why does our legislature continue to demean public schools and give taxpayer dollars to charters and private schools, ($171 million last year), rather than investing in our community schools? We are on a course of disaster regarding our public school attitudes unless we change our thinking in a short time.

  3. I agree with the other reader's comment about the chunky tomato soup. I found myself wanting a breadstick to dip into it. It tasted more like a marinara sauce; I couldn't eat it as a soup. In general, I liked the place... but doubt that I'll frequent it once the novelty wears off.

  4. The Indiana toll road used to have some of the cleanest bathrooms you could find on the road. After the lease they went downhill quickly. While not the grossest you'll see, they hover a bit below average. Am not sure if this is indicative of the entire deal or merely a portion of it. But the goals of anyone taking over the lease will always be at odds. The fewer repairs they make, the more money they earn since they have a virtual monopoly on travel from Cleveland to Chicago. So they only comply to satisfy the rules. It's hard to hand public works over to private enterprise. The incentives are misaligned. In true competition, you'd have multiple roads, each build by different companies motivated to make theirs more attractive. Working to attract customers is very different than working to maximize profit on people who have no choice but to choose your road. Of course, we all know two roads would be even more ridiculous.

  5. The State is in a perfect position. The consortium overpaid for leasing the toll road. Good for the State. The money they paid is being used across the State to upgrade roads and bridges and employ people at at time most of the country is scrambling to fund basic repairs. Good for the State. Indiana taxpayers are no longer subsidizing the toll roads to the tune of millions a year as we had for the last 20 years because the legislature did not have the guts to raise tolls. Good for the State. If the consortium fails, they either find another operator, acceptable to the State, to buy them out or the road gets turned back over to the State and we keep the Billions. Good for the State. Pat Bauer is no longer the Majority or Minority Leader of the House. Good for the State. Anyway you look at this, the State received billions of dollars for an assett the taxpayers were subsidizing, the State does not have to pay to maintain the road for 70 years. I am having trouble seeing the downside.

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