hhgregg Posts $5.7M Loss In Fiscal 1st Qtr.

By Steve Smith On Aug 6 2012 - 4:01am

INDIANAPOLIS — hhgregg reported a net loss of $5.7 million for the quarter, compared with an $800,000 loss in the prior year’s opening quarter, with sales of video products continuing to be a major problem for the company.

The increase in the net loss was the result of a comp-store sales decrease of 5.1 percent. Overall sales rose 13.5 percent for the quarter to $489.9 million.

The report was in line with the retailer’s preview of fiscal first-quarter results on July 16.

Comp-store sales for video in the quarter were down 16.7 percent, with appliances up 6.3 percent; computing and mobile phones up 8.7 percent; and the “other” category of audio, furniture, accessories and personal electronics down 19.7 percent.

The video category comp-store sales decline was driven by a double-digit decrease in unit demand and a low single-digit decrease in average selling prices. The decrease in comp-store sales for the “other” category was primarily a result of doubledigit comp-store sales decreases in cameras, camcorders and small electronics, partially offset by growth in the mattress category, the chain said.

The appliance category saw an increase in average selling prices, with unit demand relatively flat compared with the prior year three-month period. The computing and mobile phones category was led by increased demand in the offering of tablet computers and mobile phones, partially offset by declines in notebook computers, the retailer said.

Separately, hhgregg is gearing up to enter the St. Louis and Wisconsin markets this fall, as well as Illinois.

The multiregional CE and majap chain has begun staffing up for four St. Louis stores, three Milwaukee locations, and two stores in Green Bay, Wis. The chain will also enter the southern Illinois market with a store in the Springfield-Champaign area.

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