Indianapolis — The net addition of seven stores in the past 12 months, along with a comp-store increase of 2.8 percent in its fiscal second quarter, drove up second-quarter sales 15.4 percent at specialty retailer Gregg Appliances, reaching $212.9 million, up from $184.5 million in the year-ago period.
The comp-store increase was mainly due to strong performance in the major appliance and video categories, particularly in flat-panel televisions, partially offset by weaker CRT sales, said the retailer.
The company opened three new stores in Georgia, one in Alabama and three in North Carolina during the past 12 months.
However, the retailer recorded a net loss of $4.2 million in the second quarter, ended Sept. 30, compared with a net loss of $87,000 in the same quarter last year. This quarter’s loss included a pretax charge of about $2.5 million related to a decision to outsource product service and repair offerings, as well as an unfavorable year-over-year timing difference for recognition of vendor rebates totaling about $2 million pretax.
Gregg said operating results for the second quarter included a $4.5 million increase in pretax interest expense vs. the second quarter the prior year, arising from the recapitalization of Gregg Appliances last February.
Net loss for the second quarter of last year included a $6.7 million charge to reflect the increase in fair market value of certain stock-based awards.
Sales for the six months jumped 15.9 percent, hitting $397.9 million, up from $343.5 million in the first half of last year. Comp-store sale rose 4.3 percent.
The net loss for the six months reached $4.1 million, compared with a year-on-year loss of $503,000. The loss this year included a favorable $4.1 million year-over-year timing difference related to vendor rebates, partially offset by a $2.5 million pretax charge. The loss this year also included an increase of $9 million in pretax interest expense, while the loss last year included a $6.7 million charge.