INDIANAPOLIS–Net income for specialty home retailer hhgregg rose 18 percent to $26.9 million in its fiscal third quarter, which ended on Dec. 31, 2010.
The company achieved this result largely on the back of a 31 percent increase in net sales, which totaled $653.7 million in the quarter, but which included a 6.2 percent decline in same-store sales. In addition, hhgregg managed a 40 basis-point reduction in selling, general and administrative expenses as a percentage of net sales, to 18.1 percent. These factors helped offset a drop of 90 basis points in gross margin, which finished the quarter at 29.6 percent.
Dennis May, hhgregg’s president and chief executive officer, said the retailer was able to grow its bottom line in spite of a softer-than-expected holiday season due to its execution in new and existing markets. “As a result, we remain confident in our ability to continue to gain market share as we enter new markets and move closer to becoming a national retail chain,” May said.