Indianapolis — H.H. Gregg released its fiscal third-quarter results in the company’s first financial announcement following its buyout in January by a partnership comprised of Freeman Spogli & Co., a private investment firm, and the retailer’s management team, led by chairman/CEO Jerry Throgmartin.
Net sales for the three months ended Dec. 31, 2004, increased 5.8 percent to $254.2 million while same-store sales slid 2.7 percent. The company attributed the comp-store decline to a severe snowstorm that hit the chain’s Midwest markets on Dec. 22 and Dec. 23, which significantly reduced sales and forced several stores to close, offsetting strong digital TV results during the period.
Net income during the quarter edged up 1.7 percent to $14.6 million. Gross margins remained stable across all merchandise categories, but gross profit decreased 1.4 percent as a percentage of net sales due to the timing of co-op ad dollars received during the period.
Looking ahead, the company plans to open eight to 10 new or relocated stores in fiscal 2006, including three new stores in Charlotte, N.C.