hhgregg Posts $5.7M
Loss In Fiscal 1st Qtr.
By Steve Smith On Aug 6 2012 - 3:01am
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
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.