HHGregg's quarterly earnings, sales jump

Back to TopCommentsE-mailPrintBookmark and Share

HHGregg reported a rise in quarterly profit and sales Thursday morning that exceeded analyst expectations, despite a decrease in same-store sales.

The Indianapolis-based electronics and appliance retailer earned $4.9 million, or 13 cents per share, in its second fiscal quarter, which ended Sept. 30. That compares to $3.4 million, or 10 cents per share, in the year-ago period, an increase of 30 percent. The chain's earnings nearly doubled analyst predictions of 7 cents per share.

HHGregg's net sales rose to $332.2 million in the quarter, a rise of 3 percent over last year's second quarter. Analysts predicted sales of $324.5 million.

Overall sales were helped by the opening of seven new stores during the quarter. Same-stores sales, which measure revenue at stores open for at least a year, dropped 9.4 percent during the quarter.

HHGregg said sales were hurt somewhat by the falling prices of flat-screen televisions. Although the company said it sold more sets, the average price fell. Appliance sales also decreased for the second quarter in a row.

"We are pleased with our quarterly operating performance and our ability to drive growth in earnings and operating cash flow by preserving margins and managing expenses, all while continuing to add new stores,"  said HHGregg CEO  Dennis May in a prepared statement. "While the overall environment remains challenging, we are encouraged by the improving traffic and sales trends we experienced throughout the quarter."

The retailer tightened its earnings guidance for the fiscal year to a range of 90 cents to $1 per share from previous range of 85 cents to $1.

Shares of HHGregg, which operates 126 stores in 10 states, closed yesterday at $17.91 each, up from $5.11 a year ago.


Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ