hhgregg Narrows Q1 Loss as Sales Climb
INDIANAPOLIS-Increases at the checkout line, along with a more favorable expense scenario, enabled hhgregg to reduce its first-quarter net loss to $1.3 million from the $5.7 million net loss posted in last year's first quarter.
Net sales in the quarter, which ended on June 30, rose 7.2 percent to $524.9 million, which included a same-store sales gain of 0.8 percent. Comparable-store increases in home products, appliances and computing and wireless merchandise were key factors in the top-line growth. Dennis May, hhgregg's president and CEO, said consumer feedback on the retailer's new product assortments was positive in the quarter, "and (we) will continue to expand and refine these category additions throughout the coming year."
May added that hhgregg's first-quarter performance received another boost from the company's cost-cutting measures. Selling, general and administrative expenses were just about flat in dollars and declined 152 basis points as a percentage of sales, to 22.7 percent. Net advertising expense also fell 6.2 percent. Gross margin dropped 46 basis points to 29.5 percent.
hhgregg did not provide any guidance in connection with its first-quarter results, due to the relatively small seasonal influence of the first quarter on the entire year.