HHGregg's profit, sales rise

February 4, 2010

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

The Indianapolis-based electronics and appliance retailer earned $22.7 million, or 57 cents per share, in its third fiscal quarter, which ended Dec. 31. That compares to $17.1 million, or 52 cents a share, in the year-ago period.

Analysts had expected earnings of 44 cents a share, on revenue of $500.4 million, an increase of 20.3 percent.

The opening of 19 stores, in the Tampa, Memphis and Richmond, Va., markets, during the past 12 months helped offset a 0.2-percent decrease in same-store sales. Same-store sales measure sales from stores open at least a year.

The appliance category continued to show improvement, with same-store sales up 7.5 percent in the quarter. But the company’s television sales fell by 7.5 percent, due to a decline in average selling prices.

“We remain pleased with our ability to execute the business in what continues to be a very dynamic retail environment,” HHGregg CEO Dennis May said in a prepared statement. “And we remain excited about the new emerging technologies in the video category for the upcoming year.”

The retailer repeated its earnings guidance of 90 cents to $1 per share on revenue growth of 6 percent to 9 percent for fiscal 2010.

HHGregg operates 127 stores in 11 states. Company shares closed Wednesday at $20.35 each, up from $8.20 a year ago.


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