Different Challenges Are Facing hhgregg, Conn’s
By Steve Smith On Jun 7 2010 - 4:01am
NEW YORK — hhgregg and Conn’s
reported on their respective financials,
which presented both chains with different
types of challenges.hhgregg
, which is in expansion mode,
reported a lower net income on higher
sales opening quarter, ended March
31. Conn’s reported revenues down 17
percent and net income down by half in
its fiscal first quarter, ended April 30,
compared with the prior year.
In its fiscal fourth quarter, hhgregg
reported net income of $10 million,
compared with $13.9 million in the prior
year’s fourth quarter.
The decrease in fiscal fourth-quarter
net income per diluted share is the result
of a decline in comp-store sales, a decline
in gross margin, an increase in operating
expenses and an increase in diluted average
shares, the chain reported.
Net sales for the quarter were $417.3
million, up 14.4 percent from the prior
year’s fourth quarter when sales were
Net sales mix and comp-store sales
percentage changes by product category
for the fourth quarter are as follows:
In video, comp-store sales decreased
12 percent in fourth quarter due primarily
to a decline in average selling
prices, partially off set by an increase in
For appliances, net sales experienced
significant improvement across all categories
in the fourth quarter, resulting in
positive comp-store sales of 3.7 percent.
And in what it calls the “other” category,
comp-store sales grew 4.3 percent
for the quarter, primarily due to continued
strength in the computer category
and partially offset by a doubledigit
comp-store sales decrease in the
small electronics category.
Sales mix for the fourth quarter for the
three product groups were: video, 51 percent;
appliances, 33 percent; and other, 16
percent. The sales mix for the categories
for the year were: video, 47 percent; appliances,
35 percent; and other 18 percent.
The chain, ranked 20th in the
TWICE Top 100 CE Retailers Report
based on calendar year 2009 sales, said
it will open a total of 40 to 45 stores by
mid-November, of which 26 have already
opened in the first fiscal quarter of this
year, including its recent expansion into
Philadelphia. It is predicting a sales increase
for the year between 40 percent to
45 percent, with comp-store sales growth
between flat and positive 2 percent.
’s, in its first quarter had total revenues
of $197.5 million, down 17.7 percent
from the same period in the prior fi scal
year when it reached $239.9 million.
Net income was $5.5 million, down
from the prior year’s $11.4 million.
Same-store sales decreased 19.7 percent
during the first quarter of fiscal
2011, as compared with the same quarter
in the prior fiscal year.
Conn’s currently operates 76 retail
locations in Texas, Louisiana and
Conn’s ranked 35th in the TWICE
Top 100 CE Retailers Report during
calendar year 2009.