IBJNews

Retailer HHGregg suffers rare quarterly loss

Back to TopCommentsE-mailPrintBookmark and Share

Disappointing sales at stores open at least a year dragged Indianapolis-based HHGregg Inc. to just its second quarterly loss since the company went public in 2007.

The appliance and electronics retailer on Thursday reported a loss of $800,000, or 2 cents per share, in its fiscal first quarter, which ended June 30. That compared with profit of $2.7 million, or 7 cents per share, in the same period last year.

Analysts expected profit of a penny per share.

HHGregg’s only other quarterly loss occurred in the fiscal second quarter of 2007, and that was caused by a special charge related to a debt refinancing.

Same-store sales in the fiscal first quarter declined 13.2 percent compared with an increase of 6.3 percent in the same period last year. The loss was steeper than the 10.8-percent decrease in same-store sales HHGregg reported in the previous quarter.

The company also attributed the loss to an increase in selling, general and administrative expenses, a decrease in the gross-margin rate and additional advertising expenses.

“As expected, our fiscal first quarter was a challenging period,” HHGregg CEO Dennis May said in a prepared statement. “We faced the lapsing of last year’s appliance stimulus program, the grand opening sales from 26 new stores during Q1 last year and our most difficult comparable store sales comparisons in the past 11 quarters.”

Quarterly revenue dipped 1 percent, to $431.5 million.

Video and appliance sales were particularly weak, falling 20.6 percent and 12.6 percent, respectively, at stores open at least a year. Home office sales surged 54.6 percent, though, due to an increased demand for computers and electronic tablets, the company said.

HHGregg opened seven new stores in its fiscal first quarter and remains on track to open 24 during the next quarter, for a first-half total of 31.

Founded in 1955, the chain operates 190 stores in 15 states.

Its shares opened Thursday morning at $12.50 each, down from a 52-week high of $26.69 in December.

 

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. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

ADVERTISEMENT