hhgregg Net Jumps 266 Percent for Fourth Quarter, 69 Percent for Fiscal Year
INDIANAPOLIS-hhgregg ended its fiscal year with a 266 percent gain in fourth-quarter net income to $53.6 million, bringing its net income for the fiscal year as a whole to $81.4 million, up 69 percent from the prior fiscal year.
The bottom line included the proceeds from a life insurance policy from the death of Jerry Throgmartin, executive chairman of the board, in January, and from an after-tax chair for impairment for two store locations. Without these items, fourth-quarter net income was up 9.1 percent to $14.5 million.
Net sales for the quarter, which ended on March 31, jumped 21.1 percent to $613.8 million, bringing net sales for the fiscal year as a whole to $2.5 billion, up 20 percent from the prior year. Same-store sales were down 0.7 percent for the quarter and 1.1 percent for the year. hhgregg's home products, in particular appliances and mattresses, delivered strong results in the quarter.
Gross margin fell 100 basis points to 30.5 percent. Selling, general and administrative expenses rose 21.4 percent in dollars and 10 basis points as a percentage of sales, to 20.7 percent.
Dennis May, hhgregg's president and CEO, said the retailer is continuing to strengthen its position in appliances, among other categories, and is investing in its multichannel platforms. The company said it expects a net sales increase of from 9 to 12 percent for the current fiscal year, with same-store sales ranging from a decline of 1 percent to a pickup of 1 percent.