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HHGregg's stock swoons after quarterly report disappoints

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HHGregg Inc.'s stock price swooned in after-hours trading Monday and continued to fall Tuesday morning after the retailer reported quarterly sales that were short of analyst expectations.

HHGregg shares closed Monday at $15.61 each, a 52-week high, but had dropped 13 percent by Tuesday mid-morning, to $13.60 a share.

The Indianapolis-based retailer saw a big drop in earnings in its latest quarter on decreased sales, lower profit margins and higher advertising expenses, it said Monday.

The company reported earnings of $9.9 million, or 31 cents per share, for the fiscal fourth quarter, which ended March 31. That compared with $53.6 million, or $1.45 per share, in the same period a year ago.

Last year's quarter, however, included $39.6 million in earnings from a key-man life insurance payment. Adjusted earnings for the year-ago period were $14.5 million, or 39 cents per share.

Revenue for the latest quarter fell 2.6 percent, to $597.6 million.

Analysts had predicted quarterly revenue of $623 million and earnings of 29 cents per share.

Comparable store revenue, which measures sales at stores open more than a year, fell 9.8 percent.

HHGregg continued to see declines in TV sales and increases in appliance sales. About 43 percent of the company's sales came from appliances in the latest period, compared to 37 percent a year ago.  Roughly 36 percent of the retailer's sales came in the video category in the last quarter, down from 43 percent last year.

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

CEO Dennis May told analysts that the company will continue to narrow its TV offerings to feature larger, pricer models while expanding its line of home-theater furniture options.

It also plans to increase its marketing efforts in the appliance category to coincide with improvement in the U.S. housing market.

In a conference call, May said the company plans to expand its lease-to-own program and offer additional credit options.

HHGregg predicted earnings per share for fiscal 2014 in the range of 75 cents to 90 cents and  sales growth in the range of 1 percent to 3.5 percent.

May said the company would limit store openings to five in the next fiscal year.
 

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  1. I think the poster was being sarcastic and only posting or making fun of what is usually posted on here about anything being built in BR or d'town for that matter.

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  3. So disappointed in WIBC. This is the last straw to lose a good local morning program. I used to be able to rely on WIBC to give me good local information, news, weather and traffic on my 45 minute commute.Two incidents when I needed local, accurate information regarding severe weather were the first signs I could not now rely on WIBC. I work weekend 12 hour nights for a downtown hospital. This past winter when we had the worst snowfall in my 50 years of life, I came home on a Sunday morning, went to sleep (because I was to go back in Sunday night for another 12 hour shift), and woke up around 1 p.m. to a house with no electricity. I keep an old battery powered radio around and turned on WIBC to see what was going on with the winter storm and the roads and the power outage. Sigh. Only policital stuff. Not even a break in to update on the winter storm warning. The second weather incident occurred when I was driving home during a severe thunderstorm a few months ago. I had already gotten a call from my husband that a tornado warning was just southwest of where I had been. I turned to WIBC to find out what direction the storm was headed so I could figure out a route home, only to find Rush on the air, and again, no breaking away from this stupidity to give me information. Thank God for my phone, which gave me the warning that I was driving in an area where a tornado was seen. Thanks for nothing WIBC. Good luck to you, Steve! We need more of you and not the politics of hatred that WIBC wants to shove at us. Good thing I have Satellite radio.

  4. I read the retail roundup article and tried Burritos and Beers tonight. I'm glad I did, for the food was great. Fresh authentic Mexican food. Great seasoning on the carne asada. A must try!!! Thanks for sharing.

  5. John, unfortunately CTRWD wants to put the tank(s) right next to a nature preserve and at the southern entrance to Carmel off of Keystone. Not exactly the kind of message you want to send to residents and visitors (come see our tanks as you enter our city and we build stuff in nature preserves...

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