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
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
The chain ranked 20
, with $963 million in CE sales during calendar