HHGregg sales, profit beat analyst predictions-WEB ONLY

HHGregg Inc. today reported better-than-expected revenue and profit projections for the fiscal fourth quarter.

According to preliminary numbers for the quarter ended March 31, the Indianapolis-based electronics and appliances retailer had revenue of $365 million – a 13-percent increase over the same period a year ago.

The retailer said profit per share for the quarter is expected to range between 39 cents and 42 cents, compared to 32 cents in the year-ago period.

The performance beat expectations of nine analysts polled by Thomson Reuters, who predicted the company would earn 23 cents per share on sales of $349 million for the quarter.

Same-store sales decreased by about 6.5 percent during the quarter, but exceeded the company’s prediction that they would fall between 7 percent and 11 percent. Same-store sales measure revenue at stores open at least a year.

For fiscal 2009, which also ended March 31, HHGregg said it expects sales of $1.4 billion and earnings per share of $1.08 to $1.11, beating previous guidance of 85 cents to 95 cents per share. The company had earnings per share of $1.07 in fiscal 2008.

The yearly performance also exceeded analysts’ predictions of 92 cents per share in earnings on revenue of $1.38 billion.

HHGregg President Dennis May said the closure of competitor Circuit City boosted sales.

“Our very strong preliminary fourth quarter results were driven by better-than -expected performance in sales, gross margin and expense leverage,” May said. “The closure of a major competitor led to a pick-up in traffic and strong buying opportunities.”

HHGregg, which operates about 110 stores, will report final fiscal fourth-quarter and year-end results in June.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.