Hhgregg profit climbs in Q3 on increased sales

Indianapolis Hhgregg reported net income of $22.7 million for its third quarter ended December 31, 2009, up 32.8% from $17.1 million in the same period last year.

For the nine month period ended December 31, 2009, net income was $29.2 million, up 28.9% from $22.6 million last year. 

The third quarter and nine-month period increases are due in part to a growth in net sales and a modest decrease in operating expenses as a percentage of net sales were partially offset by a decline in gross margin.

Same-store sales for the quarter were down 0.2% overall. The appliance category continued to show improving trends, with same-store sales up 7.5% in the quarter.

Also in the quarter, the company entered new markets in Tampa, Fla.; Memphis, Tenn.; and Richmond, Va., and the new stores are performing in line with expectations, May added.