`

HHGregg shares fall on disappointing quarterly results

October 30, 2014
HHGregg_store_bigpic.jpg

HHGregg Inc.'s stock tumbled Thursday morning after the company's quarterly financial report fell well short of analyst expectations.

The Indianapolis-based appliance, electronics and furniture retailer reported a loss of $10.4 million, or 37 cents per share, in the second fiscal quarter ended Sept. 30, compared with a profit of $3.7 million, or 12 cents per share, in the same quarter of 2013.

Fourteen stock analysts who follow the company had expected, on average, that earnings would be flat.

Revenue in the latest quarter fell 11 percent, to $505.9 million. Analysts had predicted revenue of $532.1 million.

Sales for store locations open at least a year—a key metric in retailing known as comparable-store sales—fell 11.4 percent.

Shares fell by 9 percent in early trading and were down 7.5 percent at midday, to $5.61 each.

“Our quarterly results continue to reflect the challenges and volatility inherent to our business and the consumer electronics category,” HHGregg CEO Dennis May said in a  written statement. "While we have made progress in repositioning our merchandise offering towards appliances and other home products, this transition is ongoing.”

HHGregg saw comparable-store sales fall in every product category except home products. Appliance sales fell 5.8 percent; consumer electronics 16 percent; and computers 33.7 percent.

The company closed one store during the quarter, lowering its store count to 228 locations.

ADVERTISEMENT

Recent Articles by IBJ Staff

Comments powered by Disqus