Indianapolis - hhgregg reported higher net sales and net income for its fiscal year, but lower net income on higher sales for its fiscal fourth quarter, both of which ended March 31.
In its fiscal fourth quarter, the chain 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 $364.9 million.
In the fiscal year, net income was $39.2 million, compared with net income of $36.5 million in the prior year. Net sales for the fiscal year were $1.53 billion, up 9.9 percent from $1.39 billion in the prior year.
The increase in sales for the fiscal year and fiscal fourth quarter was primarily attributable to the net addition of 21 stores during the past 12 months, partially offset by a 4.8 percent and a 6.6 percent decreases in comp-store sales, respectively.
Dennis May, president/ CEO of hhgregg, commented, "Despite the significant challenges in the economy and our industry, we managed to grow our sales and net income during fiscal 2010, while at the same time, reinvesting in our business to strategically position the company for future growth."
About hhgregg's expansion plans, May said, "We are extremely excited to be opening a record number of new stores and entering the Mid-Atlantic region, of which 26 new stores have already opened during our first fiscal quarter of fiscal 2011."
Net sales mix and comp-store sales percentage changes by product category for the fiscal year and fourth quarter are as follows:
Video: Comp-store sales decreased 12 percent in fourth quarter and 12.3 percent for the year due primarily to a decline in average selling prices, partially offset by an increase in units sold.
Appliances: Net sales experienced significant improvement across all categories in the fourth quarter, resulting in positive comp-store sales of 3.7 percent. However comp-store sales declined 3.9 percent for the year.
Other: Comp-store sales grew 4.3 percent for the quarter and 5.9 percent for the year primarily to continued strength in the computer category, partially offset by a double-digit 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. And the sales mix for the categories for the year were: video, 47 percent; appliances, 35 percent; and other 18 percent.
The chain 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
. 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.
hhgregg currently operates 157 stores in Alabama, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.
The chain ranked 20
, with $963 million in CE sales during calendar year 2009.