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
of fiscal first-quarter results on July 16.
Dennis May, president/CEO, said in a statement, "Our first fiscal quarter proved to be more challenging than anticipated with sales and earnings coming in below our original expectations. We reacted to the sales shortfall by making adjustments to our cost structure. We expect subsequent quarters to benefit from our cost-cutting measures."
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 double-digit 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.
Jeremy Aguilar, chief financial officer, commented, "Though our industries have been challenged over the past several years, we have consistently maintained a solid liquidity position, with no long-term debt. Despite a volatile sales environment, we have been able to manage our inventory very well and are pleased with our current inventory levels. We continue to remain focused on driving long term shareholder value while maintaining a strong liquidity position."