hhgregg First-Quarter Comps Down Despite 13.5 Percent Sales Gain
INDIANAPOLIS-In spite of an increase of 13.5 percent in net sales, hhgregg's same-store sales fell 5.1 percent in its fiscal first quarter, which ended on June 30.
Net sales for the specialty retailer totaled about $490 million in the quarter, and were up as a whole primarily due to the net addition of 30 stores. hhgregg attributed its poor comp results primarily to weakness in the video category, whose same-stores sales fell 16.7 percent. Comparable-store sales in its "other" category--which includes furniture, mattresses and accessories along with audio and personal electronics--also turned in a weak quarter with a fall of 19.7 percent. Appliances sales, on the other hand, picked up 6.3 percent on a same-store basis.
The retailer added that it expects a first-quarter net loss of between $5.7 million and $6.2 million. Dennis May, hhgregg's president and CEO, said the sales data "are an indicator of the difficulty in the current retail environment," but that the company is making strides toward gaining market share in appliances, toward stabilizing gross margin rates and enhancing its e-commerce business.