Hhgregg swings to loss in tough Q2

Indianapolis –- Consumer electronics retailer Hhgregg Inc. swung from profit to loss in a generally difficult second quarter of fiscal 2014. Hhgregg reported a net loss of $10.38 million, compared to net income of $3.68 million in the same quarter the prior fiscal year.



Net sales dropped 11% to $505.86 million from $568.31 million. Same-store sales declined 11.4%. Growing expenses and declining gross profit helped push the chain into the red.



“Our quarterly results continue to reflect the challenges and volatility inherent to our business and the consumer electronics category,” said Dennis May, president and CEO. “While we have made progress in repositioning our merchandise offering towards appliances and other home products, this transition is ongoing. We have started to see improvements in our business trends with our post-Labor Day sales being down mid-single digits, which was driven by improvements in trends across all product categories."