Hhgregg reports Q2 loss; closes five stores

Consumer electronics and appliance retailer Hhgregg came up short in its second quarter.



It also exited the Wisconsin market.



The company reported a loss of $18.4 million for the quarter ended Sept. 30, with a loss of 66 cents per share. Losses, adjusted for non-recurring costs and asset impairment costs, came to 51 cents per share. The results fell short of Wall Street expectations.



Net sales fell 6.6% to $454.5 million. Same-store sales were down 6.4%. Appliance same-store sales increased 5.7%.



Online sales were a bright spot, up 35.5% over the year-ago period.



In its earnings release, Hhgregg said its closed its five stores in the “under performing” Wisconsin market to achieve greater profitability and reduce expenses.



“In the second fiscal quarter we continued to implement our strategic plan and to position Hhgregg as the best option to purchase appliances, furniture and premium consumer electronics. We successfully drove continued growth in appliances and furniture during the quarter, with stable gross margins, offset by continued decreases in the consumer electronics category. We also maintained a debt-free balance sheet at quarter end,” said Bob Riesbeck, CEO. “We also experienced solid growth through our online channel. Our focus on the customer experience continues to reflect positively as we again saw increases in customer satisfaction scores. We are energized by the upcoming holiday season as we look to maintain our steady progress.”