IBJNews

HHGregg shares slide on lower earnings outlook

Back to TopCommentsE-mailPrintBookmark and Share

Shares of HHGregg Inc. fell Thursday after the Indianapolis-based appliance and electronics retailer lowered its earnings outlook, citing weak demand for new video technology products.

By 12:15 p.m., the company’s stock price had tumbled nearly 8 percent to $20.15.

Sales of LED and 3-D televisions were less than expected while sales of lower-priced TVs were higher than anticipated, which hurt profit margins, HHGregg President and CEO Dennis May said in a written statement.

“While we are pleased with our overall sales and market share gains in the video category, our mix of video product was different than our expectations going into the holiday selling season,” he said.

The company now expects profit of $1.15 to $1.23 during fiscal 2011, which ends in March. That's well below its earlier outlook of $1.30 to $1.45 per share.

Analysts had expected $1.31 in earnings per share.

The company expects revenue to increase 38 percent to 40 percent from 2010, less than the 40 percent to 45 percent rise it had predicted. Analysts expect revenue of $2.18 billion, an increase of nearly 43 percent from 2010 revenue of $1.53 billion.

For the fiscal third quarter, which ended Dec. 31, HHGregg expects revenue to increase 30.6 percent, to $653.7 million. But same-store sales during the period are expected to slide 6.2 percent.

HHGregg will report fiscal third-quarter earnings on Feb. 8.

In November, the company said its second-quarter profit fell 20.4 percent from a year earlier despite a big rise in revenue brought on by expansion.

HHGregg expects to open between 35 and 45 new stores in fiscal 2012. Cities targeted are Chicago, Miami and Pittsburgh. It currently has 173 stores in 15 states.

ADVERTISEMENT

  • It's not weak demand..
    HH Gregg is the worst electronics retailer out there now that Circuit City is gone. They were bad 10 years ago and still are. I cant believe anyone would even shop there. I give them 2 years and they will either be bought up or belly up.
  • agreed
    I couldn't agree with you more meghan, hhgregg has the worst customer service on any retailer period. I bought a television and my sales person set up my delivery incorrectly, after an entire day of phone calls and a personal visit to the store I was made to wait for a manager for 45 minutes after coming in, I was then met by a general manager, jeff clark who only tried to sell me a dirctv package. Very shady and greasy.
  • hhgregg thinks there customers are nothing
    It is a part of hhgregg's training at their headquarter store to threaten new employees with the phrase "if you don't meet your sales goals you will be demoted to customer" everyday on the sales floor is a day on the chopping block. Hhgregg employees are on a 7.50 dollar an hour draw. Meaning if they sell nothing in an eight hour shift then they owe hhgregg the entire days wages back. They hire people with no experience in electronics, like myself, they then spend 2 weeks training about sales techniques and preach that if the customer walks it is your fault for not making the sale. These sales techniques leave no time for a sales associate to care about any customers problem from the past at all. Even the most sucessful salesman at hhgregg are basically cut-throat crooks, but if you don't want to talk to them that is ok The sales managers are there in ties and suits to "close" you on the sale
  • Don't blame demand
    It's not the demand falling as much as the well documented fact that HH Gregg customer service is horrendous at best, non-existent the remainder. They sell substandard products, do not correct issues in a timely manner, and obviously don't care about customers. They should not be in business at all with their track record.

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. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT